Buckeye Department Stores, Inc., operates a chain of department stores in Ohio. The companys organization chart appears below. Operating data for 20x5 follow. Picture BUCKEYE DEPARTMENT STORES, INC. Operating Data for 20x5 (in thousands) Columbus Division Olentangy Store Scioto Store Downtown Store Cleveland Division (total for all stores) Sales revenue $ 6,000 $ 2,500 $ 15,000 $ 26,000 Variable expenses: Cost of merchandise sold 4,000 2,100 5,000 13,000 Sales personnelsalaries 600 320 710 1,300 Sales commissions 70 30 80 210 Utilities 90 50 140 300 Other 80 35 110 260 Fixed expenses: Depreciationbuildings 100 80 250 480 Depreciationfurnishings 90 60 130 300 Computing and billing 40 30 75 170 Warehouse 80 50 220 460 Insurance 40 25 80 210 Property taxes 35 20 70 180 Supervisory salaries 160 120 410 920 Security 30 30 70 220 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 $50,000 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 $140,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $150,000, which are not allocated to the two divisions. Income-tax expense for 20x5 is $1,930,000. Required: 1. Prepare a segmented income statement for Buckeye Department Stores, Inc. (Enter your answers in thousands.) 2. How would the segmented income statement help the president of Buckeye Department Stores manage the company? It helps to reallocate fixed expenses based on contribution margins of each segment. It helps to ascertain the profitability of each division, which is more important than the rate of return on investment of the various segments. It would help to gain insight into the performance of the individual stores and their divisions. 1. Prepare a segmented income statement for Buckeye Department Stores, Inc. (Enter your answers in thousands.)