Assignment:
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 exp 400,000 320,000 150,000
Fixed exp controllable 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.
Question 1. Prepare a segmented income statement for Countywide Cable Service, Inc.Use the contribution format.
Question 2. Build a spreadsheet: 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.