VeeLance Corp., sells merchandise through three retail outlets-in Dallas, Houston, and Austin-and operates a general corporate headquarters in Houston. A review of the company's income statement indicates a record year in terms of sales and profits. Management desires additional insights about the individual stores and has asked you to prepare a segmented income statement. The following information has been extracted from VeeLance's accounting records: The sales volume, sales price, and purchase price data follow: Sales volume Dallas 38,500 units Unit selling price Unit purchase price $ 33.00 15.75 Houston 42,500 units $ 31.50 15.75 Austin 46,600 units $ 29.25 20.25 The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: Text Sales commissions Dallas 7% Houston 7% Austin 7% Local advertising $ 18,000 Local property taxes 7,500 $ 40,500 3,750 $ 117,000 13,500 Sales manager salary - - 70,500 Store manager salaries 54,000 73,500 87,000 Other noncontrollable costs 10,200 7,650 41,700 1. Local advertising decisions are made at the store manager level. 2. The sales manager's salary in Austin is determined by the Austin store manager 3. The store manager's salaries are set by VeeLance's vice president. Nontraceable fixed corporate expenses total $363,450. The company uses a responsibility accounting system. The average operating assets for each segment: Dallas Houston Austin Average operating assets $ 4,600,000 $ 3,750,000 $ 3,900,000 The company's minimum required rate of return is 8%.