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 Store Scioto Store Downtown Store Individual Stores BUCKEYE DEPARTMENT STORES, INC. Operating Data for 20x1 (in thousands) Columbus Division Olentangy Scioto Store Store Downtown Store $5,000 $ 2,400 $11,000 Cleveland Division (all stores) $ 21,000 3,000 400 50 80 60 2,000 300 40 60 35 6,000 750 90 150 120 12,000 1,600 200 300 250 Sales revenue Variable expenses : Cost of merchandise sold Sales personnel-salaries Sales commissions Utilities Other Fixed expenses: Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse Insurance Property taxes Supervisory salaries Security 90 50 30 60 120 80 40 70 40 35 152 30 250 140 75 200 90 470 290 160 450 200 170 900 210 25 20 100 30 400 80 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 $50,000 of computing costs, which are not allocated to individual stores. 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 $50,000 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 $100,000, 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 $1,950,000 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. 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 Stores, Inc. Cleveland Division Columbus Division Olentangy Store Scioto Store Downtown Store Not Allocated Variable operating expenses: Total variable expenses Segment contribution margin Fixed expenses controllable by segment manager: Buckeye Department Stores, Inc. Cleveland Division Columbus Division Olentangy Store Scioto Store Downtown Store Not Allocated Variable operating expenses: Total variable expenses Segment contribution margin Fixed expenses controllable by segment manager: Total Profit margin controllable by segment manager Fixed expenses, traceable to segment, but controllable by others: Total Profit margin traceable to segment $ 5,000 $ 2,400 $11,000 $ 21,000 3,000 400 50 80 60 2,000 300 40 60 35 6,000 750 90 150 120 12,000 1,600 200 300 250 Sales revenue Variable expenses : Cost of merchandise sold Sales personnel-salaries Sales commissions Utilities Other Fixed expenses: Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse Insurance Property taxes Supervisory salaries Security 199*** *3*3*233 120 40 70 40 35 150 30 90 50 30 60 25 20 100 30 250 140 75 200 90 80 400 470 290 160 450 200 170 900 210 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 $50,000 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 $100,000, 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 $1,950,000 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. Required 1 Required 2 How would the segmented income statement help the president of Buckeye Department Stores manage the company? Dit helps to reallocate fixed expenses based on contribution margins of each segment. It would help to gain insight into the performance of the individual stores and their divisions. It helps to ascertain the profitability of each division, which is more important than the rate of return on investment of the various segments