Question

Hwk - Segments Saved 2 Exercise 6-7 Segmented Income Statement [LO6-4) 1.16 points Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $640,000, 60%, and $64,000, respectively. The North Division's contribution margin and contribution margin ratio are $195,000 and 75%, respectively. The South Division's segment margin is $54,000. The company has $76,800 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3)) eBook References Divisions Total Company Amount % North Amount South % Amount % 0 0.0 0 0.0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses Net operating income 0.0 0 0.0 $ 0 0.0 $ 0 0.0 $ 0 0.0 Mc Graw Hill < Prev 2 of 6 !! Next > W MacBook Pro с Q Search or type URL
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Answer 1

{ Pardon me regarding the north and south division in working notes }

classmate Date Page Az DIVISIONS TOTAL COMPANY NORTH DANISION SOUTH DIVISION AMOUNT % AMOUNT AMOUNT % 6,40,000 100% 2,60,000 100% 3,80,000. 100% % Sales EM 50% Variable Expenses 2.560 40% 65.000 25% 94.000 50% Contribution Marcin 3,84,000 60% 1,95,000 75% Traceable Fixed Expensel 243200 38% 108,200 42% 1.35.000 36% Textatorial Secuented Maxaik 1, 40,800 22% 86,800 33% 54,000 14% Common Fixed Cast 76,800 12% Net Operating Tescomuel 64,000 10% WORKING NOTE: TOTAL COMPANY Contribution Margin= Sale XCM Ratio (6,40.000X 60%) 3,84,000 Variable Expenses = lale-GM (5,40,000 – 3,84,000) 2,56,000 Segemented Margin = Net operating income t common F.C 1,40.800 * Divisional Fised Cost = CM-Segawonted Mazgin C 32,43,200 A DIVISION Sales Total Sales - North Sales (6,40.000 -260,000 3,80,000 = Total Voc-North V.C. (256,000-65000 1,91,000 Contribution Margin (3,80.000 – 491,000) 11,89,000 NORTH DIVISION 4 Sales CM/CM Ratio (95,000/75%) Variable Expenses Sales - CM (260,000 -1,95000 65,000 Seqsuented Margin = Total Margin- South Morgen * (1,40,800 - 54,000) SOUTH Variable Expenses 12,60,000 86,800