EXERCISE 6–8 Segmented Income Statement [LO4]
EXERCISE 6–8 Segmented Income Statement [LO4]
Michaels Company segments its income statement into its East and West Divisions. The com- pany’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 seg- mented 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.
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Posted 11 May 2017 01:05 PM
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file 1494507930-1364067_1_636300116181605721_segment-margin-income-statement.xlsx preview (213 words )
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