Piedmont Novelties, Inc., sells merchandise through three retail outletsin Raleigh, Charlotte, and Savannahand operates a general corporate headquarters in Charlotte. A review of the companys income statement indicates a record year in terms of sales and profits. Management, though, desires additional insights about the individual stores and has asked that Judson Wyatt, a newly hired intern, prepare a segmented income statement. The following information has been extracted from Piedmonts accounting records:

Sales volume, sales price, and purchase price data:

	Raleigh			Charlotte			Savannah
Sales volume		39,000	units		43,000	units		46,800	units
Unit selling price	$	38.00		$	36.50		$	34.25
Unit purchase price		18.25			18.25			24.00

The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs:

	Raleigh			Charlotte			Savannah
Sales commissions		8	%		8	%		8	%
Local advertising	$	18,500		$	43,000		$	132,000
Local property taxes		7,750			4,000			15,000
Sales manager salary								78,000
Store manager salaries		56,500			78,500			97,000
Other noncontrollable costs		10,700			7,900			46,700

Local advertising decisions are made at the store manager level. The sales managers salary in Savannah is determined by the Savannah store manager; in contrast, store manager salaries are set by Piedmont Noveltiess vice president.

	Nontraceable fixed corporate expenses total $388,450.
	The company uses a responsibility accounting system.

Required:

1.	Assume the role of Judson Wyatt and prepare a segmented income statement for Piedmont