PERFORMANCE REPORT FOR PROFIT CENTERS Watson Clothiers, a retailer specializing in men's and ladies' career clothing, has stores in two Ohio cities: Cincinnati and Columbus. These stores are evaluated as profit centers. Sales and direct costs for the stores in 2xwere as follows: Cincinnati $220,000 80,000 32,000 16,000 1,000 Columbus $380,000 152,000 45,000 19,000 2,000 Net sales Cost of goods sold Sales salaries Property taxes, utilities, and depreciation Miscellaneous operating expense The following indirect costs were incurred by service departments at Watson Clothiers during 20x4 S83,000 49,000 67,000 General Administration Personnel and Payroll Advertising Store managers can control the services used from the Personnel and Payroll and the Advertising departments, based on hiring and marketing decisions. They cannot control services provided by General Administration. Use of service department resources in 20was as follows: % used by Columbus 60% % used by Cincinnati 40% Personnel and Payroll Advertising 75% 25% Required: Prepare divisional income statements for Watson Clothiers, showing each store's income from operations. In accordance with responsibility accounting, include only controllable revenues and controllable expenses. Kaenes Only Conetndle