Sales revenue $ 2,888 Variable expenses: Cost of merchandise sold 4,888 Sales personnelsalaries 688 Sales commissions 58 Utilities ?8 Other 68 Fixed expenses: Depreciationbuildings 128 Depreciationfurnishings 68 Computing and billing 58 Warehouse 58 Insurance 58 Property taxes 45 Supervisory salaries 188 Security 38 $2,566 2,166 338 36 58 45 98 48 38 58 35 38 148 38 $12,888 7,666 256 96 156 126 268 148 65 268 98 88 458 88 $ 26,666 16,666 1,266 216 338 268 528 388 128 588 218 188 938 228 The following fixed expenses are controllable at the divisional level: depreciationfurnishings, computing and billing, warehouse. insurance, and security. In addition to these expenses, each division annually incurs $60,000 of computing costs, which are not allocated to individual stores. The following fixed expenses are controllable only at the company level: depreciationbuilding, property taxes, and supervisory salaries. In addition to these expenses, each division incurs costs for supervisory salaries of $130,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $120,000, which are not allocated to the two divisions. Incometax expense for 20x1 is $4,300,000. 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.) Total variable expenses Segment contribution margin Fixed expenses controllable by segment manager: Prot margin controllable by segment manager Fixed expenses. traceable to segment, but controllable by others: Total Prot margin traceable to segment Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 How would the segmented income statement help the president of Buckeye Department Stores manage the company? Olt helps to reallocate xed expenses based on contn'bution margins of each segment. Oil helps to ascertain the protability of each division, which is more important than the rate of return on investment of the various segments. Olt would help to gain insight into the performance ofthe individuai stores and their divisions.