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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

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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 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 37 200 unit 41 . 200 uAt 46, 0eo 16-25 LD.50 nita Sales volune Unit selling price 18.50 9.25 9.25 The following expenses were incurred for sales commissions, local advertising, property taxes, manegement salaries, and other noncontroleble (but treceable) costs: Sales comnissioas tonal advertiing Local property taxes Gales manager salary stoze nanager salarLes Other noneentrollable 6e 16,700 34,000 78.000 9,600 51.000 61,000 28,700 s,B50 3,100 7,500 60,500 7.000 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 Local advertising decisions are made et the store maneger level. The sales maneger'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 $298,450. 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

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