Reference no: EM132912607
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 Company
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%.
Which of the following amounts should be used to evaluate whether Cable Inc., should continue to invest company resources in the Outlying segment?
2) Assuming use of a responsibility accounting system, which of the following amounts should be used to evaluate the performance of the Outlying segment manager?
3) In addition, the company incurred common fixed costs of $60,000 and tax rate is 40%. What the Metro's segment profit margin?
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