Problem 12-45 Prepare Segmented Income Statement: Contribution-Margin Format; Retail (LO 12-5) Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The company's organization chart appears below Operating data for 20x1 follow. Buckeye Department Stores Cleveland Division Columbus Division Olentangy Store Scioto Store Individual Stores Downtown Store BUCKEYE DEPARTMENT STORES, INC. na sinnets Enn ut BUCKEYE DEPARTMENT STORES, DNIC Operating Data for 2014 (in thousands) Columbus Division olantang Scioto Store Stora Downtown Store $ 8.000 $ 2,700 $13,000 Cleveland Division (11 stores) $ 21,000 6,000 500 50 80 60 2,300 348 se 70 55 7.000 750 80 130 10,000 1,200 210 330 260 Loe Sales revenue Variable expenses Cost of merchandise sold Sales personnel-salaries Sales comissions Utilities Other Fixed expenses Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse Insurance Property taxes Supervisory salaries Security 110 90 60 80 60 55 180 4e 30 40 40 70 45 40 150 40 210 120 65 260 80 70 450 70 52e 300 170 see 210 180 950 220 The following fixed expenses are controllable at the divisional level depreciation--furnishings, computing and biling, warehouse, Insurance, and security. In addition to these expenses, each division annually incurs $70,000 of computing costs, which are not The following fixed expenses are controllable at the divisional levels depreciation--furnishings, computing and bring warehouse insurance, and security. In addition to these expenses, each division annually incurs 570,000 of computing costs, which are not allocated to individual stores. The following fixed expenses are controllable only at the company level depreciation-building property taxes, and supervisory salaries. In addition to these expenses, each division incurs costs for supervisory salaries of $120.000, which are not allocated to Individual stores Buckeye Department Stores incurs common fixed expenses of $150,000, which are not allocated to the two divisions income tax expense for 20x1 is $2,750,000 Required: 1. Prepare a segmented income statement for Buckeye Department Stores, Inc. 2. How would the segmented income statement help the president of Buckeye Department Stores manage the company Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a segmented income statement for Buckeye Department Stores, Inc. (Enter your answers in thousands.) Buckeye Department Storesine Segments of Company Cleveland Columbus Division Division segments of Columbus Division Olentandy Seloto Store Downtown Not Store Store Allocated Variable operating expenses 0 $ 0 5 5 0$ 05 05 05 Total variable expenses Segment contribution margin Fixed expenses controllable by segment manager 05 05 OS $ 05 0 5 o 5 y 0 $ 0 0 $ $ 0 a 5 0 $ 0 5 05 0 $ 0 $ 0$ $ $ 0 $ 0 0 Total Profit margin controllable by segment manager Fixed expenses, traceable to segment, but controllable by others Os come by som manager 0 S 05 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 $ 0 $ 0 $ Total Profit margin traceable to segment $ $ 0$ 0 $ 0 05 0 $ 05 05 $ $ 0 $ 0$ 0 $ 0 3 0 0 $ 0 + $ 0 Required 2 >