Problem

SegmentedIncome Statement; TV Cable CompanyCountywide Cable Services, Inc. is organized wi...

SegmentedIncome Statement; TV Cable Company

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

$1.000,000

$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

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:

1. Prepare a segmented income statement for Countywide Cable Services, Inc. Use the contribution format.

2. Build aspreadsheet:Construct an Excel spreadsheet to solve the preceding requirement. Show how the solution will change if the following information changes: the sales revenues were $950.000 and $815.000 for Metro and Suburban, respectively.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search