Prepare an income statement for shannon company

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Reference no: EM131928230

Problem

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 $400,000, 60%, and $40,000, respectively. The North Division's contribution margin and contribution margin ratio are $105,000 and 75%, respectively. The South Division's segment margin is $30,000. The company has $48,000 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.

Reference no: EM131928230

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