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 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 segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).)
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Solutions
ekkarill92 answered 2 years agoRelated 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 $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 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...
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...
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