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 Downtown Store Store Store $6,000 $2,400 $11,000 Cleveland Division (all stores) $ 20,000 4,000 400 50 90 60 2,000 320 40 60 25 7,000 770 100 150 120 12,000 1,600 210 330 260 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 100 40 40 120 80 30 70 30 25 150 40 60 15 10 100 40 240 140 85 220 100 90 420 90 490 300 170 470 210 180 900 220 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 $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 $1,250,000. 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 $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 $1,250,000. 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 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 Required 1 Required 2 > 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 Downtown Store Store Store $6,000 $2,400 $11,000 Cleveland Division (all stores) $ 20,000 4,000 400 50 90 60 2,000 320 40 60 25 7,000 770 100 150 120 12,000 1,600 210 330 260 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 100 40 40 120 80 30 70 30 25 150 40 60 15 10 100 40 240 140 85 220 100 90 420 90 490 300 170 470 210 180 900 220 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 $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 $1,250,000. 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 $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 $1,250,000. 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 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 Required 1 Required 2 >