Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The company's organization chart appears below. Operating data for 20x1 follow. Buckeye Department Stores Columbus Division Cleveland Division Olentangy Scioto Downtown Individual Store Store Store Stores BUCKEYE DEPARTMENT STORES, INC Operating Data for 20x1 (in thousands) Columbus Division Cleveland Division Olentangy Scioto Downtown (total for all stores) $24,000 Store Store Store Sales revenue $4,000 $2,800 $13,000 Variable expenses: Cost of merchandise sold 3,000 2,400 8,000 15,000 Sales personnel-salaries Sales commissions 340 700 720 1,200 60 50 240 90 ties 60 35 130 290 Other Fixed expenses Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse 90 270 120 510 80 40 150 330 30 95 200 40 70 70 200 490 40 25 90 240 Insurance 35 20 80 210 Property taxes Supervisory salaries Security 150 120 440 900 30 30 80 250 The following fixed expenses are controllable at the divisional level: depreciation-furnishings, 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 fixed expenses are controllable only at the company level: depreciation-building, property taxes, and supervisory salaries. In addition to these expenses, each division incurs costs for supervisory salaries of $110,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $120,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $1,500,000. Required: 1. Prepare a segmented income statement for Buckeye Department Stores, Inc. 2. How would the segmented income statement help the president of Buckeye Department Stores manage the company? Complete this question by entering your answers in the tabs below. Prepare a segmented income statement for Buckeye Department Stores, Inc. (Enter your answers in thousands.) Segments of Company Segments of Columbus Division Buckeye Department Stores, Inc. Scioto Store Downtown Store Olentangy Store Cleveland Columbus Division Not Division Allocated Variable operating expenses: 0$ 0$ Total variable expenses 0 $ 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Segment contribution margin 0 Fixed expenses controllable by segment manager: 0$ Total 0 0$ Profit margin controllable by segment manager 0 $ $ $ $ 0 $ 0 Fixed expenses, traceable to segment, but controllable by others: Segment contribution margin $ 0 0 Fixed expenses controllable by segment manager: Total 0$ $ $ 0 $ C $ C 0 0 0S 0$ 0 $ Profit margin controllable by segment manager $ 0 0 Fixed expenses, traceable to segment, but controllable by others: $ $ $ C $ Total 0 0 C 0 0 $ 0S $ 0 $ 0 Profit margin traceable to segment 0 $ Required1 Required 2
