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 $660,000, 58%, and $55,000, respectively. The West Division's contribution margin and contribution margin ratio are $155,000 and 70%, respectively. The East Division's segment margin is $70,000. The company has $59,000 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 segmented by divisions.
- divisions
- total company East west
- Amount % amount % amont %
- sales
- variable expenses
- contribution margin
- traceable fixed expenses
- territorial segment margin
- common fixed expenses
- net operating income(loss)