Show-Off, Inc., sells merchandise through three retail outletsin 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: Sales volume Unit selling price Unit purchase price Las Vegas 37,900 units $ 27.00 12.75 Reno 41,900 units $ 25.50 12.75 Sacramento 46, 360 units $ 23.25 15.75 The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: Sales commissions Local advertising Local property taxes Sales manager salary Store manager salaries Other noncontrollable costs Las Vegas 5% $ 17,400 7,200 Reno 5% $ 37,500 3,450 Sacramento 5% $ 99,000 11,700 61,500 75,000 35,700 51,000 9,600 67,500 7,350 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 $333,450. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off. (Round your answers to the nearest whole dollar.) Show-Off, Inc. Las Vegas Reno Sacramento Sales revenue Variable operating expenses: Sales commissions Total $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Segment contribution margin Fixed expenses controllable by segment manager: Total 0 $ 0 $ $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Profit margin controllable by segment manager Fixed expenses traceable to segment, but controllable by others: Total $ 0 $ 0 $ 0 0 $ 0 $ Segment profit margin $ 0 $ 0 $ 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Identify the probable causes for the poor performance of the weakest store. (Select "Yes" if the statement is probable cause for the poor performance of the weakest store, and "No" if it is not a probable cause.) The markup on cost of the other two outlets at Las Vegas and Reno is much higher. The store manager's salary is the highest for Sacramento's in terms of units sold. The return on the outlay of advertising and sales manager's salary is inadequate. The other noncontrollable cost of Sacramento's outlet is very high compared to that of the outlets at Las Vegas and Reno. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which of the following should be reviewed in evaluating the performance of the store manager? should be reviewed in evaluating the performance of the store manager. d 2 Required 3 > Segment contribution margin of the store Segment profit margin of the store The profit margin controllable by the store manager
