Show-Off, Inc., sells merchandise through three retail outletsin Las Vegas, Reno, and Sacramentoand operates a general corporate headquarters in Reno. A review of the companys 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-Offs accounting records:

• The sales volume, sales price, and purchase price data follow:

	Las Vegas		Reno		Sacramento
Sales volume		38,200	units			42,200	units			46,480	units
Unit selling price	$	30.00			$	28.50			$	26.25
Unit purchase price		14.25				14.25				18.00

• The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs:

	Las Vegas		Reno		Sacramento
Sales commissions		8	%			8	%			8	%
Local advertising	$	17,700			$	39,000			$	108,000
Local property taxes		7,350				3,600				12,600
Sales manager salary										66,000
Store manager salaries		52,500				70,500				81,000
Other noncontrollable costs		9,900				7,500				38,700

1. Local advertising decisions are made at the store manager level. The sales managers salary in Sacramento is determined by the Sacramento store manager; in contrast, store manager salaries are set by Show-Offs vice president.

• Nontraceable fixed corporate expenses total $348,450.
• The company uses a responsibility accounting system.

Required: 1. Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off.