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DATA INPUT
Metro Suburban Outlying
Service revenue 950,000$ 750,000$ 350,000$
Variable expenses 150,000 100,000 50,000
Controllable fixed expenses 350,000 270,000 100,000
Fixed expenses controlled by others 180,000 150,000 40,000
Common fixed expenses 45,000$
Income tax expense 245,000$
SOLUTION
Segmented income statement using the contribution format:
Tri-County
Cable
Services Metro Suburban Outlying
Service revenue 2,050,000$ 950,000$ 750,000$ 350,000$
Less: Fixed expenses, traceable to segment,
but controllable by others 370,000 180,000 150,000 40,000
