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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
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 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: Las Vegas Reno Sacramento Sales volume 38, 000 units 42, 900 units 46, 400 units Unit selling price $ 28.00 $ 26.50 $ 24.25 Unit purchase price 13.25 13. 25 16.50 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 6% 6% 6 Local advertising $17 , 500 $38, 000 $102, 090 Local property taxes 7, 250 3,500 12, 090 Sales manager salary 63, 000 Store manager salaries 51, 500 68, 500 77,900 Other noncontrollable costs 9,700 7, 400 36,790 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 $338,450. The company uses a responsibility accounting system.Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off. (Round your answers to the ne dollar.) Show-Off, Inc. Las Vegas Reno Sacramento Variable operating expenses: Total 0 0 0 0 Segment contribution margin 69 0 $ 0 0 0 Fixed expenses controllable by segment manager: Total 0 0 0 0 Profit margin controllable by segment manager 0 $ 0 $ 0 $ 0 Fixed expenses traceable to segment, but controllable by others:
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