Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The companys organization chart appears below. Operating data for 20x1 follow.

BUCKEYE DEPARTMENT STORES, INC.
Operating Data for 20x1
(in thousands)
	Columbus Division
	Olentangy Store			Scioto Store			Downtown Store				Cleveland Division (total for all stores)
Sales revenue	$	7,000		$	2,500		$	12,000			$	26,000
Variable expenses:
Cost of merchandise sold		4,000			2,100			7,000				10,000
Sales personnelsalaries		600			330			750				1,200
Sales commissions		50			30			90				210
Utilities		70			50			150				330
Other		60			45			120				260
Fixed expenses:
Depreciationbuildings		120			90			260				520
Depreciationfurnishings		60			40			140				300
Computing and billing		50			30			65				170
Warehouse		50			50			260				500
Insurance		50			35			90				210
Property taxes		45			30			80				180
Supervisory salaries		180			140			450				930
Security		30			30			80				220

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 $60,000 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 $130,000, 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 $4,300,000.

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?