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Problem 12-44 Segmented Income Statement; Responsibility Accounting (LO 12-3, 12-5) Show-Off, Inc. sells merchandise through three retail outlets n Las Vegas, Reno, and Sacramento and
Problem 12-44 Segmented Income Statement; Responsibility Accounting (LO 12-3, 12-5) Show-Off, Inc. sells merchandise through three retail outlets n 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: Sacramento Las Vegas Reno 100 units 42,100 units 46,440 units Sales volume 38 Unit selling price 29.00 27.50 25.25 Unit purchase price 13.75 13.75 17.25 The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: Reno Sacramento Las Vegas Sales commissions 7% 7% 17,600 38,500 $105,000 Local advertising Local property taxes 7,300 3,550 12,300 Sales manager salary 64,500 Store manager salaries 52,000 69,500 79,000 Other able costs 9,800 7,450 37,700
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