Question

In: Accounting

shannon company segments its income statement into its North and South Divisions. The company's overall sales,...

shannon company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ration, and net operating income are $1,020,000, 38%, and $20,400 respectively. The North Division's contribution margin and contribution margin ratio are $142,800 and 42% respectively. The south Division's segment margin is $163,200. The company has $244,800 of common fixed expenses that cannot be traced to either divisions. Prepare an income statement for Shannon Company that uses the contribution format and is segmented by division. In addition, for the company as whole and for each segment show each item on the segmented income statements as percent of sales.

Solutions

Expert Solution

Total Company

North

South

Sales

$1,020,000

100.0%

$340,000

100.0%

$680,000

100.0%

Variable Cost

$632,400

62.0%

$197,200

58.0%

$435,200

64.0%

Contribution margin

$387,600

38.0%

$142,800

42.0%

$244,800

36.0%

Traceable Fixed Expenses

$122,400

12.0%

$40,800

12.0%

$81,600

12.0%

Segment Margin

$265,200

26.0%

$102,000

30.0%

$163,200

24.0%

Common Fixed expenses

$244,800

24.0%

Net Income

$20,400

2.0%

--Working

Total Company

North

South

Sales

1020000

100.0%

=142800/42%

100.0%

=1020000-340000

100.0%

Variable Cost

=1020000-387600

62.0%

=340000-142800

58.0%

=632400-197200

64.0%

Contribution margin

=1020000*38%

38.0%

142800

42.0%

=387600-142800

36.0%

Traceable Fixed Expenses

=387600-265200

12.0%

=142800-102000

12.0%

=244800-163200

12.0%

Segment Margin

=244800+20400

26.0%

=265200-163200

30.0%

163200

24.0%

Common Fixed expenses

244800

24.0%

Net Income

20400

2.0%

ekkarill92 answered 2 months ago
Next > < Previous

Related Solutions

Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
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 $990,000, 36%, and $19,800, respectively. The North Division’s contribution margin and contribution margin ratio are $132,000 and 40%, respectively. The South Division’s segment margin is $151,800. The company has $227,700 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...
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
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 $1,050,000, 40%, and $21,000, respectively. The North Division’s contribution margin and contribution margin ratio are $154,000 and 44%, respectively. The South Division’s segment margin is $175,000. The company has $262,500 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...
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
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 $900,000, 30%, and $18,000, respectively. The North Division’s contribution margin and contribution margin ratio are $102,000 and 34%, respectively. The South Division’s segment margin is $120,000. The company has $180,000 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...
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
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 $990,000, 36%, and $19,800, respectively. The North Division’s contribution margin and contribution margin ratio are $132,000 and 40%, respectively. The South Division’s segment margin is $151,800. The company has $227,700 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...
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales,...
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 $540,000, 50%, and $43,200, respectively. The North Division’s contribution margin and contribution margin ratio are $157,500 and 75%, respectively. The South Division’s segment margin is $44,000. The company has $81,000 of common fixed expenses that cannot be traced to either division.
Shannon Company segments its income statement in its North and South Division. The company’s overall sales,...
Shannon Company segments its income statement in its North and South Division. The company’s overall sales, contribution margin ratio, and net operating income are $420,000, 50%, and $21,000, respectively. The North Division’s contribution margin and contribution margin ratio are $112,500 and 75%, respectively. The South Division’s segment margin is $35,000. The company has $63,000 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...
Michaels Company segments its income statement into its East and West Divisions. The company’s overall sales,...
Michaels Company segments its income statement into its East and West Divisions. The company’s overall sales, contribution margin ratio, and net operating income are $600,000, 50%, and $50,000, respectively. The West Division's contribution margin and contribution margin ratio are $150,000 and 75%, respectively. The East Division's segment margin is $70,000. The company has $60,000 of common fixed costs that cannot be traced to either division. Required: Prepare an income statement for Michaels Company that uses the contribution format and is...
Exercise 6-7 Segmented Income Statement [LO6-4] Shannon Company segments its income statement into its North and...
Exercise 6-7 Segmented Income Statement [LO6-4] 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 $700,000, 50%, and $56,000, respectively. The North Division’s contribution margin and contribution margin ratio are $217,500 and 75%, respectively. The South Division’s 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...
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format...
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 937,500 $ 750,000 $ 187,500 Variable expenses 637,500 600,000 37,500 Contribution margin 300,000 150,000 150,000 Traceable fixed expenses 142,000 71,000 71,000 Segment margin 158,000 $ 79,000 $ 79,000 Common fixed expenses 62,000 Net operating income $ 96,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format...
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 937,500 $ 750,000 $ 187,500 Variable expenses 637,500 600,000 37,500 Contribution margin 300,000 150,000 150,000 Traceable fixed expenses 152,000 76,000 76,000 Segment margin 148,000 $ 74,000 $ 74,000 Common fixed expenses 64,000 Net operating income $ 84,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT