Noah Bothwell owns and operates a small chain of convenience stores in Waterloo and Cedar Rapids. The company has five stores including a downtown store and a Sumner store in the Waterloo division; and a downtown store, a Solon store, and an airport store in the Cedar Rapids Division. There is also a separate administrative staff that provides market research, personnel, and accounting and finance services. The company had the following financial results for 2011 (in thousands): EEB (Click the icon to view the financial information.) The following data about 2011 operations were also available (Click the icon to view More Info Requirement 1. Prepare an income state Data Table Begin by preparing the i each division, and finally zero-balances. Use a the thousan 1. 2. All five stores used the same pricing formula; therefore, all had the same gross margin percentage Sales were largest in the two downtown stores, with 25% of the total sales volume in each. The Solon and airport stores each provided 20% of total sales volume, and the Sumner store provided 10% Variable operating costs at the stores were 15% of revenue for the downtown stores. The other stores had lower variable and higher fixed costs. Their variable operating costs were only 10% of sales revenue Sales revenue Cost of merchandise sold Gross margin Operating expenses Income before income taxes 16,000 7.120 8,880 3,625 5,255 3. 4. The fixed costs over which the store managers had control were $110,000 in each of the downtown stores, $175,000 at Solon and airport, and S90,000 at Sumner The remaining $965,000 of operating costs consisted of a. $220,000 controllable by the Cedar Rapids division manager but not by individual stores, b. $110,000 controllable by the Waterloo division manager but not by individual stores, and c. $635,000 controllable by the administrative staff Of the S635,000 spent by the administrative staff, $320,000 directly supported the Cedar Rapids division, with 25% for the downtown store, 20% for each of the Solon and airport stores, and 35% for Cedar Rapids operations in general. Another $180,000 supported the Waterloo division, 40% for the downtown store, 45% for the Sumner store, and 15% supporting Waterloo operations in general. The other $135,000 was for general corporate expenses. 5. Al Net sales Print Done 6. Enter any number in the parts remaining Check Answer Noah Bothwell owns and operates a small chain of convenience stores in Waterloo and Cedar Rapids. The company has five stores including a downtown store and a Sumner store in the Waterloo division; and a downtown store, a Solon store, and an airport store in the Cedar Rapids Division. There is also a separate administrative staff that provides market research, personnel, and accounting and finance services. The company had the following financial results for 2011 (in thousands): Click the icon to view the financial information.) The following data about 2011 operations were also available: (Click the icon to view the information.) Requirement 1. Prepare an income statement by segments using the contribution approach to responsibility accounting. Begin by preparing the income statements for the subdivisions of the Waterloo division, then prepare the income statements for the subdivisions of the Cedar Rapids division, then prepare the income statements for each division, and finally, prepare the income statements for the company as a whole. (Enter amounts in thousands. Round answers to the nearest thousands. Leave any unused cells blank. Do not enter a " for any zero-balances. Use a minus sign or parentheses for any negative contributions. Abbreviations used.) Breakdown of Waterloo Division Not Allocated Downtown Sumner Net sales Enter any number in the edit fields and then click Check Answer Noah Bothwell owns and operates a small chain of convenience stores in Waterloo and Cedar Rapids. The company has five stores including a downtown store and a Sumner store in the Waterloo division; and a downtown store, a Solon store, and an airport store in the Cedar Rapids Division. There is also a separate administrative staff that provides market research, personnel, and accounting and finance services. The company had the following financial results for 2011 (in thousands) Click the icon to view the financial information.) The following data about 2011 operations were also available (Click the icon to view the information.) Requirement 1. Prepare an income statement by segments using the contribution approach to responsibility accounting Not Allocated Downtown Sumner Net sales Variable costs: COGS Variable oper. exp Total variable costs CM Fixed cost contr Enter any number in the edit fields and then click Check Answer. FAM9-A2 (similar to) Question Help * Noah Bothwell owns and operates a small chain of convenience stores in Waterloo and Cedar Rapids. The company has five stores including a downtown store and a Sumner store in the Waterloo division; and a downtown store, a Solon store, and an airport store in the Cedar Rapids Division. There is also a separate administrative staff that provides market research, personnel, and accounting and finance services. The company had the following financial results for 2011 (in thousands): Click the icon to view the financial information.) The following data about 2011 operations were also available (Click the icon to view the information.) Requirement 1. Prepare an income statement by segments using the contribution approach to responsibility accounting. CM Fixed cost contr by seg. managers Contribution contr by seg. managers Fixed cost contr by others Enter any number in the edit fields and then click Check Answen