Problem 2 Ssangnum Cable Services Inc., is organized in three segments: Ubwa. Miran, and Sunyoung. Data...

 

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Problem 2 Ssangnum Cable Services Inc., is organized in three segments: Ubwa. Miran, and Sunyoung. Data for the company and for these segments follow. Ssangnum Services Inc. doxeos 9330919 Uhwa 500 Segments of Company Miran 400 (b) Service revenue Less: Variable costs Segment contribution margin Less: Controllable fixed costs Controllable profit margin Less: Noncontrollable fixed costs Segment profit margin Less: Common fixed costs Income before taxes Less: Income tax expense Net income Variable costs as a percentage of service revenue are: Ubwa. 20%; Mican, 18.75%; and Sunyoung, 25%. Required: A. Complete the segmented income statement for Ssangnum Cable. B. Evaluate the three segment managers for consideration of a pay raise. Base the managers' performance on an appropriate measure, and rank their performance with respect to absolute dollars and as a percentage of service revenue. What causes any difference in rankings between the two approaches? (f) 200 200 (k) 85 (c) (g) 160 100 Sunyoung 200 (m) (d) (h) Lala 75 75 30 Problem 2 Ssangnum Cable Services Inc., is organized in three segments: Ubwa. Miran, and Sunyoung. Data for the company and for these segments follow. Ssangnum Services Inc. doxeos 9330919 Uhwa 500 Segments of Company Miran 400 (b) Service revenue Less: Variable costs Segment contribution margin Less: Controllable fixed costs Controllable profit margin Less: Noncontrollable fixed costs Segment profit margin Less: Common fixed costs Income before taxes Less: Income tax expense Net income Variable costs as a percentage of service revenue are: Ubwa. 20%; Mican, 18.75%; and Sunyoung, 25%. Required: A. Complete the segmented income statement for Ssangnum Cable. B. Evaluate the three segment managers for consideration of a pay raise. Base the managers' performance on an appropriate measure, and rank their performance with respect to absolute dollars and as a percentage of service revenue. What causes any difference in rankings between the two approaches? (f) 200 200 (k) 85 (c) (g) 160 100 Sunyoung 200 (m) (d) (h) Lala 75 75 30

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