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: Sacramento Las Vegas Reno 37,600 units 41,600 units 46,240 units Sales volume Unit selling price 24.00 22.50 20.25 Unit purchase price 11.25 11.25 13.50 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 68 68 69 Local advertising $17,100 $36,000 90,000 Local property taxes 7,050 3,300 10,800 Sales manager salary 57,000 Store manager salaries 49,500 64,500 69,000 32,700 noncontrollable costs 9,300 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 Wyatt and prepare a segmented income statement for Show-Off 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