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 $15,000 $7,200 $33,000 $63,000 Variable expenses: Cost of merchandise sold 9,000 6,000 18,000 36,000 Sales personnelsalaries 1,200 900 2,250 4,800 Sales commissions 150 120 270 600 Utilities 240 180 450 900 Other 180 105 360 750 Fixed expenses: Depreciationbuildings 360 270 750 1,410 Depreciationfurnishings 240 150 420 870 Computing and billing 120 90 225 480 Warehouse 210 180 600 1,350 Insurance 120 75 270 600 Property taxes 105 60 240 510 Supervisory salaries 450 300 1,200 2,700 Security 90 90 240 630 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 $150,000 of computing costs, which are not allocated to individual stores. Chapter 12 Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard 533 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 $300,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $360,000, which are not allocated to the two divisions. Income-tax expense for 20x5 is $5,850,000. Required: 1. Prepare a segmented income statement similar to Exhibit 127 for Buckeye Department Stores, Inc. The statement should have the following columns: Segments of Company Segments of Columbus Division Buckeye Department Stores, Inc. Cleveland Division Columbus Division Olentangy Store Scioto Store Downtown Store Not Allocated Prepare the statement in the contribution format, and indicate the controllability of expenses. Subtract all variable expenses, including cost of merchandise sold, from sales revenue to obtain the contribution margin. 2. How would the segmented income statement help the president of Buckeye Department Stores manage the company?