Problem 12-44 Segmented Income Statement; Responsibility Accounting (LILO 12-3, ) 12-5) Show-Off, Inc., sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general Page 563 corporate headquarters in Reno. A review of the company's 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 Show-Off's accounting records: . The sales volume, sales price, and purchase price data follow: Las Vegas Reno Sacramento Sales volume 37,000 units 41,000 units 46,000 units Unit selling price $12.00 $11.00 $9.50 Unit purchase price 5.50 5.50 6.00 . The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: Las Vegas Reno Sacramento Sales commissions 6% 6% 6% Local advertising $11,000 $22,000 $48,000 Local property taxes 4,500 2,000 6,000 Sales manager salary 32,000 Store manager salaries 31,000 39,000 38,000 Other noncontrollable costs 5,800 4,600 17,800 Local advertising decisions are made at the store manager level. The sales manager's salary in Sacramento is determined by the Sacramento store manager; in contrast, store manager salaries are set by Show-Off's vice president. . Nontraceable fixed corporate expenses total $192,300. . The company uses a responsibility accounting system.Required: 1. Assume the role of Judson Wyatt and prepare a segmented income statement for ShowO". 2. Determine the weakestperforming store and present an analysis ofthe probable causes of poor performance. 3. Assume that an opening has arisen at the Reno corporate headquarters and the company's chief executive ofcer (CEO) desires to promote one ofthe three existing store managers. In evaluating the store managers' performance. should the CEO use a store's segment contribution margin, the prot margin controllable by the store manager, or a store's segment prot margin? Justify your