Reference no: EM132894841
Question - County Cable Service Inc. is recognized in three segments, Metro, Suburban, and Outlying.
Data for the company and these three segments are as follows:
|
|
Metro
|
Suburban
|
Outlying
|
Cable
|
|
Service Revenue
|
$500
|
400
|
200
|
1100
|
|
Variable Costs
|
100
|
75
|
50
|
225
|
|
Controllable fixed costs
|
200
|
160
|
75
|
435
|
|
Traceable fixed costs
|
115
|
100
|
45
|
260
|
1) In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%. Determine the Suburban's segment contribution margin?
2) In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%. Determine the profit margin controllable by the Suburban segment manager?
3) In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%. Assume that the Metro segment increases its promotion expense, a controllable fixed cost, by $20,000. As a result, revenues increased by $100,000. If variable expenses are tied directly to revenues, Determine the new Metro segment profit margin?
4) In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%. Based upon the above information Determine the Cable's net income after tax?