FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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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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