Chapter 12, Problem 32E

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:

1. 1. Prepare a segmented income statement for Countywide Cable Services, Inc. Use the contribution format.
2. 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.