Problem 12-44 Segmented Income Statement; Responsibility Accounting (LO 12-3, 12-5) Show-Off, Inc., sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general 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: Sales volume Unit selling price Unit purchase price Las Vegas 37,600 units $ 24.00 11.25 Reno 41,600 units $ 22.50 11.25 Sacramento 46,240 units $ 20.25 13.50 The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: Las Vegas 68 $17.100 7,050 Reno 66 $36,000 3,300 Sales commissions Local advertising Local property taxes Sales manager salary Store manager salaries other noncontrollable costs Sacramento 68 $90,000 10,800 57,000 69,000 32,700 49,500 9,300 64,500 7,200 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 $318.450. The company uses a responsibility accounting system. Required: 1. Assume the role of Judson Watt and prepare A segmented income statement for Show-Off 1. Assume the role of Judson Wyatt and prepare a segmented income statement for Show-OH. 2. Identify the probable causes for the poor performance of the weakest store. 3. Which of the following should be reviewed in evaluating the performance of the store manager? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off. (Round your answers to the nearest whole dollar.) Show-Off, Inc. Las Vegas Reno Sacramento Variable operating expenses 0 $ 0 $ Total Segment contribution margin Fixed expenses controllable by segment manager: $ $ 0 $ 0 $ 0 0 0 $ 0 $ $ Total Profit margin controllable by segment manager Fixed expenses traceable to segment, but controllable by others 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 0 $ Sacramento Las Vegas Show-Uff, Inc Variable operating expenses 0 $ $ os 0 $ 0$ 0 s 0 $ 0 $ 0 Total Segment contribution martin Fixed expenses controllable by segment manager: 0 $ $ 0 $ 0 s 0 $ os 0 $ 0 $ 0 Total Profit margin controllable by negment manager Fixed expenses traceable to segment, but controlable by others: 0 Total Segment profit margin $ $ $ $ ols 0 0 $ os 0 0 $ 0 Retured Required 2 >
