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 Store Downtown Store Individual Stores BUCKEYE DEPARTMENT STORES, INC Operating Data for 20x1 (in thousands) Columbus Division 0lentangy Scioto Store $7,000 Store $2,500 Downtown Store 12,000 Cleveland Division (total for all stores) 26,000 Sales revenue Variable expenses: 10,000 1,200 Cost of merchandise sold Sales personnel-salaries Sales commissions Utilities Other 4, 000 2,100 7,000 Fixed expenses: Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse Insurance Property taxes Supervisory salaries Security 260 520 170 140 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: depreclation-building, property taxes, and supervisory salarlies. In addition to these expenses, each division incurs costs for supervisory salarles of $130,000, which are not allocated to Individual stores