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 of profits. Management, through, desires additional insights about the individual stores and has asked that Judson Wyatt, a newly hired intern, prepare a segmented in come statement. The following information has been extracted from Show-Off's accounting records.
The sales volume, sales price, and purchase price data follow:
	Las Vegas	Reno	Sacremento
Sales Volume	37,000	41,000	46,000
Unit Selling Price	$12.00	$11.00	$9.50
Unit Purchase Price	$5.50	$5.50	$6.00
The following expenses wee incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable ( but traceable ) costs:
	Las Vegas	Reno	Sacremento
Sales Commission	6%	6%	6%
Local advertising	$11,000	$22,000	$48,000
Loca property taxes	$4,500	$2,000	$6,000
Sales manager salary			$32,000
Store manager salaries	$31,000	$39,000	$38,000
Other noncontrollable costs	$5,800	$4,600	$17,800
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 $192,300
The company uses a responsibility accounting systesm
Required:
1. Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off.
2. Determine the weakest-performing stoere and present analysis of the probable causes of poor performance.
3. Assume that an opening has arisen at the Reno corporate headquarters and the companys chief executive office (CEO) desires to promote one of the three existing store managers. In evaluating the store managers performance, should the CEO use a store's segment contribution margin, the profit margin controllable by the store manager, or a store's segment profit margin? Justfy your answer