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  3. shannon company segments its income statement in i

Shannon Company segments its income statement in its North and South Division. The companys overall...

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Accounting

Shannon Company segments its income statement in its North and South Division. The companys overall sales, contribution margin ratio, and net operating income are $700,000, 50%, and $56,000, respectively. The North Divisions contribution margin and contribution margin ratio are $217,500 and 75%, respectively. The South Divisions segment margin is $60,000. The company has $84,000 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. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3))

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Divisions Total Company North South Amount % Amount % Amount %

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