Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The company's organization chart appears below. Operating data for 20x1 follows:

Buckeye Department Stores, Inc.

Operating Data for 20x1

(in thousands)

Columbus Division

OlentangyScioto StoreDowntown StoreCleveland Division Store (total for all stores)

Sales Revenue $5,000$2,700 $12,000$22,000

Variable expenses:

Cost of merchandise sold$3,000$2,300$7,000 $14,000

Sales personnel-salaries $400$330$740 $1,700

Sales commissions$50$30$100$260

Utilities $70$50$170$300

Other$60$55$140$310

Fixed expenses:

Depreciation-buildings$110$100 $290 $530

Depreciation-furnishings$70 $40$160$350

Computing and billing$60$40$65$220

Warehouse$60$50$240$510

Insurance$60$45$100$260

Property taxes $55$40$90$230

Supervisory salaries$140$110$460$930

Security $40$40$90$270

The following fixed expenses are controllable at the divisional level: depreciationfurnishings, computing and billing, warehouse, insurance, and security. In addition to these expenses, each division annually incurs $80,000 of computing costs, which are not allocated to individual stores.

The following fixed 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 $120,000, which are not allocated to individual stores.

Buckeye Department Stores incurs common fixed expenses of $140,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $1,300,000.

1. Show an income statement for Buckeye Department Stores, Inc.
2. How would the segmented income statement help the president of Buckeye Department Stores manage the company?