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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
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 | $ | 990,000 | $ | 790,000 | $ | 390,000 | |||
Variable expenses | 158,000 | 108,000 | 58,000 | ||||||
Controllable fixed expenses | 362,000 | 282,000 | 112,000 | ||||||
Fixed expenses controllable by others | 188,000 | 158,000 | 48,000 | ||||||
In addition to the expenses listed above, the company has $65,000 of common fixed expenses. Income-tax expense for the year is $265,000. Required: 1. Prepare a segmented income statement for Countywide Cable Services, Inc.
SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC. Segments of Company Countywide Cable Services Metro Suburban Outlying Segment contribution margin Profit margin controllable by segment manager Profit margin traceable to segmentStep by Step Solution
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