Question $4.$

Gator Country Cable, Incorporated is organized in three segments: Metro, Suburban, and Outlying. Data for the company and for these

segments follow.

Variable costs as a percentage of service revenue are: Metro, $20\%$; Suburban, $18\mathrm{.}75\%$; and Outlying, $25\mathrm{.}0\%.$

Required:

A$.$ Complete the segmented income statement for Gator Country Cable.

B$.$ Evaluate the three segment managers for consideration of a pay raise. Base the managers' performance on $(1)$ absolute dollars of the

appropriate profit measure, and $(2)$ the appropriate profit measure as a percentage of service revenue. What causes any difference in

rankings between the two approaches?