2. 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.
2. 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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...
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Question
![Required information
Countywide Cable Services, Incorporated, is organized with three segments: Metro, Suburban, and Outlying. Data for
these segments for the year just ended follow
Service revenue
Variable expenses
Controllable fixed expenses
Fixed expenses controllable by others
Metro
$1,000,000
200,000
400,000
230,000
Suburban
$ 800,000
150,000
320,000
200,000
Outlying
$ 400,000
100,000
150,000
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.
2. 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb292d14c-504c-46e3-a62e-eab4060ac7ce%2F917f2e2d-1c66-4f64-bcf0-b83e9f91c717%2Fmpp3xvk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Countywide Cable Services, Incorporated, is organized with three segments: Metro, Suburban, and Outlying. Data for
these segments for the year just ended follow
Service revenue
Variable expenses
Controllable fixed expenses
Fixed expenses controllable by others
Metro
$1,000,000
200,000
400,000
230,000
Suburban
$ 800,000
150,000
320,000
200,000
Outlying
$ 400,000
100,000
150,000
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.
2. 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.
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