Prepare a profit statement for sparky electrical services

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Question - Sparky Electrical Services is organised into three divisions: Metro, Suburban and Regional. Data for these divisions for last year were as follows:

 

Metro

Suburban

Regional

Service revenue

$950000

$750000

$350000

Variable expenses

150000

100000

50000

Controllable fixed expenses

350000

270000

100000

Fixed expenses controllable by others

180000

150000

40000

In addition to the expenses listed above, the company had $45000 of common fixed costs last year that were not attributable to the three divisions. Income tax expense for the year was $245000.

Required - Prepare a profit statement for Sparky Electrical Services that highlights the profitability/ performance of the three business units and the business unit mangers. Use the contribution format.

Reference no: EM132510270

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