Countywide Cable Services, Inc. is organized with three segments: Metro, Suburba
ID: 2512954 • Letter: C
Question
Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow.
In addition to the expenses listed above, the company has $110,000 of common fixed expenses. Income-tax expense for the year is $310,000.
Required:
Prepare a segmented income statement for Countywide Cable Services, Inc.
Metro Suburban Outlying Service revenue $ 1,080,000 $ 880,000 $ 480,000 Variable expenses 176,000 126,000 76,000 Controllable fixed expenses 389,000 309,000 139,000 Fixed expenses controllable by others 206,000 176,000 66,000Explanation / Answer
Segments of the company Cable Metro Suburban outlying Service Service revenue 2,440,000 1,080,000 880,000 480,000 2,440,000 Variable expenses 378,000 176,000 126,000 76,000 378,000 Segement contribution margin 2,062,000 904,000 754,000 404,000 2,062,000 less:Fixed Expenses controllable by segment manger 837,000 389,000 309,000 139,000 837,000 profit margin controllable by segment manager 1,225,000 515,000 445,000 265,000 1,225,000 less:fixed expenses ,traceable to segment,but controllable by others 448,000 206,000 176,000 66,000 448,000 profit margin traceable to the segment 777,000 309,000 269,000 199,000 777,000 less:common fixed expense 110,000 income before taxes 667,000 less:income tax expenses 310,000 Net income 357,000