Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

BUCKEYE DEPARTMENT STDREE, Inc. Operating Data for 20x1 (in thousands} Colunlaus Division Olentangy Scioto Downtown Cleveland Division (all Sta re store Store stores} Sales revenue

image text in transcribedimage text in transcribed
BUCKEYE DEPARTMENT STDREE, Inc. Operating Data for 20x1 (in thousands} Colunlaus Division Olentangy Scioto Downtown Cleveland Division (all Sta re store Store stores} Sales revenue $6,000 $2,400 $13,008 $23,080 Variable expenses: Cost of merchandise sold 3.000 2.000 8.003 10,033 Sales personnelsalaries 500 33B 148 1,483 Sales commissions 60 40 93 25B Utilities 90 60 13W! 380 Other 80 45 14B 388 Fixed expenses: Depreciationbuildings 100 90 268 538 Depreciation-furnishings 90 50 168 348 Computing and billing 50 3B 35 213 Warehouse 30 60 24B 480 Insurance 50 35 93 250 Property taxes 45 30 38 22B Supervisory salaries 160 120 43a 923 Security 30 30 an 268 The following xed expenses are controllable at the divisional level: depreciationfurnishings, computing and billing, warehouse, insurance, and security. In addition to these expenses. each division annually incurs $60,000 of computing costs, which are not allocated to individual stores. The following xed expenses are controllable only at the company level: depreciationbuilding. property taxes. and supervisory salaries. In addition to these expenses. each division incurs costs for supervisory salaries of $130,000, which are not allocated to individual stores. Buckeye Department Stores incurs common xed expenses of $120,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $3,200,000. Required: 1. Prepare a segmented income statement for Buckeye Department Stores, Inc. 2. How would the segmented income statement help the president of Buckeye Department Stores manage the company? Required 1 Required 2 Prepare a segmented income statement for Buckeye Department Stores, Inc. (Enter your answers in thousands.) Segments of Company Segments of Columbus Division Buckeye Department Cleveland Columbus Olentangy Scioto Store Downtown Not Stores, Inc. Division Division Store Store Allocated Variable operating expenses: Total variable expenses $ o $ o $ 0 $ 0 $ 0 $ 0 $ 0 Segment contribution margin o $ o $ 0 $ o $ o $ o $ Fixed expenses controllable by segment manager: Total $ o $ 0 $ 0 $ 0 $ 0 $ 0 $ Profit margin controllable by segment manager o $ o $ o $ o $ o $ $ Fixed expenses, traceable to segment, but controllable by others: Total $ o $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Profit margin traceable to segment o $ o $ 0 $ o $ 0 $ 0 $ 0 $ 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Advanced Accounting

Authors: Joe Ben Hoyle

8th Edition

1260575926, 978-1260575927

More Books

Students also viewed these Accounting questions

Question

Behaviour: What am I doing?

Answered: 1 week ago