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 OutlyingService revenue ........................................$1,000,000 $800,000 $400,000Variable expenses ......................................200,000 150,000 100,000Controllable fixed expenses ...................400,000 320,000 150,000Fixed 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 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.
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 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.
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