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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

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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 $5,000 $ 2,800 $13,000 Cleveland Division (all stores) $ 24,000 3,000 400 60 80 60 2,400 330 50 70 45 8,000 720 80 150 120 15,000 1,200 240 360 290 Sales revenue Variable expenses : Cost of merchandise sold Sales personnel-salaries Sales commissions Utilities Other Fixed Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse Insurance Property taxes Supervisory salaries Security sed expenses: 140 70 50 60 50 45 170 40 80 40 40 70 35 30 110 40 270 140 95 200 80 70 440 70 510 330 200 490 240 210 920 250 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 $120,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $130,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $1,850,000. 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? 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 $ 0 0 $ 0 AA Oo GAA Oo OO AIA Oo 2 ] $ 0 A 0 $ 0 Segment contribution margin Fixed expenses controllable by segment manager: Total $ $ O 0 $ O $ 0 $ 0 $ 0 $ 0 0 0 $ 0 0 $ 0 $ o $ 0 Profit margin controllable by segment manager Fixed expenses, traceable to segment, but controllable by others: Total $ 0 $ $ O $ 0 $ $ $ 0 $ $ O O Profit margin traceable to segment $ 09 0 $ 0 $ O $ 0 0 $ $ 0 $ 0 $ 0 Required 1 Required 2 >

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