Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow.

	Metro			Suburban			Outlying
Service revenue	$	1,010,000		$	810,000		$	410,000
Variable expenses		162,000			112,000			62,000
Controllable fixed expenses		368,000			288,000			118,000
Fixed expenses controllable by others		192,000			162,000			52,000

In addition to the expenses listed above, the company has $75,000 of common fixed expenses. Income-tax expense for the year is $275,000.

1. Prepare a segmented income statement for Countywide Cable Services, Inc. Answer is complete but not entirely correct. SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC. Segments of Company Countywide Cable Metro Suburban Outlying Services $ Service revenue $ 2,230,000 1,010,000 $ 810,000 $ 410,000 Variable expenses 336,000 162,000 112,000 62,000 Segment contribution margin $ 1,894,000 $ 848,000 $ 698,000 $ 348,000 Less: Fixed expenses controllable by segment manager 774,000 368,000 288,000 118,000 Profit margin controllable by segment manager $ 1,120,000 $ 480,000 $ 410,000 $ 230,000 Less: Fixed expenses, traceable to segment, but controllable by others 446,000 192,000 162,000 92,000 Profit margin traceable to segment $ 674,000 $ 288,000 $ 248,000 $ 138,000 Less: Common fixed expenses 434,000 Income before taxes $ 240,000 Less: Income tax expense 275,000 Net income $ (35,000)