Question
County Cable Service Inc. is recognized in three segments, Metro, Suburban, and Outlying. Data for the company and these three segments are as follows: Metro
County Cable Service Inc. is recognized in three segments, Metro, Suburban, and Outlying.
Data for the company and these three segments are as follows:
Metro Suburban Outlying Cable
Service Revenue $500 400 200 1100
Variable Costs 100 75 50 225
Controllable fixed costs 200 160 75 435
Traceable fixed costs 115 100 45 260
1) In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%.
Suburban's segment contribution margin is:
2) In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%.
The profit margin controllable by the Suburban segment manager is
3) In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%.
Assume that the Metro segment increases its promotion expense, a controllable fixed cost, by $20,000. As a result, revenues increased by $100,000. If variable expenses are tied directly to revenues, the new Metro segment profit margin is:
4)In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%.
Based upon the above information Cable's net income after tax is:
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