Countywide Cable Services, Inc. is organized with three segments: Metro, Suburba
ID: 2585603 • 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 $95,000 of common fixed expenses. Income-tax expense for the year is $145,000.
Required:
Prepare a segmented income statement for Countywide Cable Services, Inc.
Metro Suburban Outlying Service revenue $ 1,000,000 $ 800,000 $ 400,000 Variable expenses 200,000 150,000 100,000 Controllable fixed expenses 400,000 320,000 150,000 Fixed expenses controllable by others 230,000 200,000 90,000 MENTED INCOME STATEMENTS COUNTYWIDE CABLE SERVICES, INC. Segments of Company Countywide | cable Metro Suburban Outlying Il Services Segment contribution margina...PTT Profit margin controllable by segment manager Profit margin traceable to segmentExplanation / Answer
Segmented Income Statements : Countywide Cable Services, inc Countrywide Cabal Services($) Segments of the company Metro($) Suburban ($) Outlying ($) Service revenue 22,00,000 1,000,000 800,000 400,000 Variable expenses 450,000 200,000 150,000 100,000 Segment Contribution Margin 1750,000 800,000 650,000 300,000 Less : Controllable fixed expenses 870,000 400,000 320,000 150,000 Proft margin contrllable by segment managers 880,000 400,000 330,000 150,000 Less : Segment fixed cost but controllable by others 520,000 230,000 200,000 90,000 Proft margin traceable to segment 360,000 170,000 130,000 60,000 Less : Common fixed cost 95,000 Income before taxes 265,000 Less: Income tax expenses 145,000 Net Income 120,000