Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for theyear just ended follow.Service revenueVariable expensesControllable fixed expensesFixed expenses controllable by othersSegment contribution marginMetro$1,140,000188,000407,000218,000Profit margin controllable by segment managerSuburban$940,000138,000327,000188,000In addition to the expenses listed above, the company has $140,000 of common fixed expenses. Income-tax expense for the year is$340,000.Profit margin traceable to segmentOutlying$540,000Required:1. Prepare a segmented income statement for Countywide Cable Services, Inc.88,000157,00078,000SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC.CountywideCable ServicesMetroSegments of CompanySuburbanOutlying

Income statement is prepared by the business organizations so as to know how much amount of net…

Countywide Cable Services, Inc., 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. Segment contribution margin Suburban Outlying $940,000 $540,000 188,000 138,000 407,000 327,000 218,000 188,000 In addition to the expenses listed above, the company has $140,000 of common fixed expenses. Income-tax expense for the year is $340,000. Metro $1,140,000 Required: 1. Prepare a segmented income statement for Countywide Cable Services, Inc. Profit margin controllable by segment manager 88,000 157,000 78,000 Profit margin traceable to segment SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC. Countywide Cable Services Metro Segments of Company Suburban Outlying

Countywide Cable Services, Inc., 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. Segment contribution margin Suburban Outlying $940,000 $540,000 188,000 138,000 407,000 327,000 218,000 188,000 In addition to the expenses listed above, the company has $140,000 of common fixed expenses. Income-tax expense for the year is $340,000. Metro $1,140,000 Required: 1. Prepare a segmented income statement for Countywide Cable Services, Inc. Profit margin controllable by segment manager 88,000 157,000 78,000 Profit margin traceable to segment SEGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC. Countywide Cable Services Metro Segments of Company Suburban Outlying

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Countywide Cable Services, Incorporated, is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow. Sales Revenue $ 1,140,000 $ 940,000 $ 540,000 Variable expenses 188,000 138,000 88,000 Controllable fixed expenses 407,000 327,000 157,000 Fixed expenses controllable by others 218,000 188,000 78,000 In addition to the expenses listed above, the company has $140,000 of common fixed expenses. Income-tax expense for the year is $340,000. Required: 1. Prepare a segmented income statement for Countywide Cable Services, Incorporated.
Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as follows: Metro Suburban Outlying Service Revenue ₱ 90,000 ₱ 70,000 ₱ 35,000 Variable Expenses 15,000 10,000 5,000 Controllable Fixed Expenses 30,000 25,000 10,000 Fixed Expenses controllable by others 20,000 15,000 5,000 In addition to the expenses listed above, the company has ₱6,000 common fixed expenses. The income tax expense for the year is ₱21,000. What is the segment margin associated with the Suburban Division? Show solution Group of answer choices ₱ 20,000 ₱ 35,000 ₱ 15,000 ₱ 25,000
Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as follows: Metro Suburban Outlying Service Revenue ₱ 90,000 ₱ 70,000 ₱ 35,000 Variable Expenses 15,000 10,000 5,000 Controllable Fixed Expenses 30,000 25,000 10,000 Fixed Expenses controllable by others 20,000 15,000 5,000 In addition to the expenses listed above, the company has ₱6,000 common fixed expenses. The income tax expense for the year is ₱21,000. What is the net income after tax of Beau County Cable Services, Inc? Show solution Group of answer choices ₱ 33,000 ₱ 35,000 ₱ 54,000 ₱ 60,000
Quaye Cable Services, Incorporated, is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow. Metro Suburban Outlying Service revenue $ 1,140,000 $ 940,000 $ 540,000 Variable expenses 188,000 138,000 88,000 Controllable fixed expenses 407,000 327,000 157,000 Fixed expenses controllable by others 218,000 188,000 78,000 In addition to the expenses listed above, the company has $140,000 of common fixed expenses. Income-tax expense for the year is $340,000. Required: 1. Prepare a segmented income statement for Quaye Cable Services, Incorporated.
The following data relate to Department no. 3 of Tsing Corporation: Segment contribution margin 540,000 Profit margin controllable by segment manager 310000 Segment profit margin 150000 On the basis of this information, Department no. 3's variable operating expenses are: Select one: a. $80,000. b. $160,000. c. $230,000. d. $390,000. e. not determinable.
Line Item Description SegmentMediaNetworks SegmentParks, Experiences,and Products SegmentEntertainment Direct-to-Consumer& International Revenues $28,393 $16,502 $9,636 $16,967 Operating expenses (19,400) (16,600) (7,100) (19,800) Operating income $8,993 $(98) $2,536 $(2,833) Assume the following percentages of total operating expenses for each segment are variable: Segment Percentage of VariableOperating Expenses Media Networks 75% Parks, Experiences, and Products 60% Studio Entertainment 80% Direct-to-Consumer & International 70% Question Content Area a. Prepare a variable costing income statement for The Walt Disney Company by segment. If required, use a minus sign to indicate an operating loss. Round all amounts to the nearest million. The Walt Disney CompanyVariable Costing Income Statement(in millions) Line Item Description MediaNetworks Parks, Experiences,and Products StudioEntertainment Direct-to-Consumer &International…
Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles.Data regarding these segments is as follows: LouisianaSegment OrlandoSegment Los AngelesSegment Contribution to indirect expenses $328,500 $207,600 $155,500 Assets directly used & identified with segment $1,858,700 $1,410,000 $742,600 1. Calculate the return on investment for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. LouisianaSegment OrlandoSegment Los AngelesSegment Segment Net Income Investment base (assets) ROI (%) Rankings (1,2, or 3, where 1 is the best) 2. Assume the cost of capital is 14% for a segment. Calculate residual income for each segment. Rank them from highest to lowest. Round percent to 1 decimal place. LouisianaSegment OrlandoSegment Los AngelesSegment Segment Net Income Investment base (assets) Cost of Capital (%) Minimum Income Residual Income…
Arlington Clothing, Inc., shows the following information for its two divisions for year 1. Lake Region Coastal Region Sales revenue $ 4,160,000 $ 13,070,000 Cost of sales 2,691,300 6,535,000 Allocated corporate overhead 249,600 784,200 Other general and administration 553,900 3,755,000 Required: a. Compute divisional operating income for the two divisions. Ignore taxes. b-1. What are the gross margin and operating margin percentages for both divisions? b-2. How well have these divisions performed?
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 750,000 $ 600,000 $ 150,000 Variable expenses 510,000 480,000 30,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 128,000 64,000 64,000 Segment margin 112,000 $ 56,000 $ 56,000 Common fixed expenses 54,000 Net operating income $ 58,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.)
The Emergency Medical Services Company has two divisions that operate independently of one another. The financial data for the year 20X5 reported the following results: North South Sales $3,720,000 $3,220,000 Operating income 930,000 730,000 Taxable income 785,000 510,000 Investment 6,000,000 5,000,000 The company's desired rate of return is 10%. Income is defined as operating income. a. What are the respective return-on-investment ratios for the North and South divisions? Round ROI to the nearest whole percentage. North: Answer South: Answer b. What are the respective residual incomes of the North and South divisions? North: Answer South: Answer c. Which division has the better return on investment and which division has the better residual income figure? Return on investment: Answer Residual Income: Answer
(J) Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division ADivision BDivision CSales$ 12,120,000$ 28,120,000$ 20,120,000Average operating assets$ 3,030,000$ 7,030,000$ 5,030,000Net operating income$ 496,920$ 449,920$ 503,000Minimum required rate of return7.00%7.50%10.00%Required: 1. Compute the margin, turnover, and return on investment (ROI) for each division. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 8% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept the opportunity
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 120,000 60,000 60,000 Segment margin 120,000 $ 60,000 $ 60,000 Common fixed expenses 50,000 Net operating income $ 70,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.