Bell Electrical Services is organized into three division: Metro, Suburan

Bell Electrical Services is organized into three division: Metro, Suburan and Regional. Data for these divisions for last year were as follows:

In addition to the expenses listed above, the company had $90 000 of common fixed expenses. Income tax expense for the year was $490 000.

Required:

1. Prepare a profit statement for Bell Electrical Services using Excel that highlights the profitability performance of the three business units and the business unit managers. Use the contribution format.

2. Show how the solution will change if the following information changes: the sales revenues were $1 920 000 and $1 560 000 for Metro and Suburban, respectively?

 

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