Columbus Division Olentangy Store Scioto Store Downtown Store Sales revenue Variable expenses: Cost of merchandise sold...

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Columbus Division Olentangy Store Scioto Store Downtown Store Sales revenue Variable expenses: Cost of merchandise sold Sales personnel-salaries Sales commissions Utilities Other Fixed expenses: Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse Insurance Property taxes Supervisory salaries Security Cleveland Division BUCKEYE DEPARTMENT STORES, INC. Operating Data for 20x1 (in thousands) Columbus Division Individual Stores Olentangy Scioto Store Store Downtown Store stores) $ 5,000 $2,500 $15,000 3,000 600 2,100 310 288 289 29 130 90 8988 29888 6,000 Cleveland Division (all) $ 25,000 15,000 750 1,800 70 230 180 350 150 280 280 520 170 320 75 190 250 500 25 70 230 60 200 160 130 50 450 60 940 240 The following fixed expenses are controllable at the divisional level: depreciation-furnishings, computing and billing, warehouse, Insurance, and security. In addition to these expenses, each division annually Incurs $70,000 of computing costs, which are not allocated to Individual stores. The following fixed expenses are controllable only at the company level: depreciation-building, property taxes, and supervisory salaries. In addition to these expenses, each division Incurs costs for supervisory salaries of $150,000, which are not allocated to Individual stores. Buckeye Department Stores Incurs common fixed expenses of $140,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $3,050,000. Required: 1. Prepare a segmented Income statement for Buckeye Department Stores, Inc. 2. How would the segmented Income statement help the president of Buckeye Department Stores manage the company? Columbus Division Olentangy Store Scioto Store Downtown Store Sales revenue Variable expenses: Cost of merchandise sold Sales personnel-salaries Sales commissions Utilities Other Fixed expenses: Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse Insurance Property taxes Supervisory salaries Security Cleveland Division BUCKEYE DEPARTMENT STORES, INC. Operating Data for 20x1 (in thousands) Columbus Division Individual Stores Olentangy Scioto Store Store Downtown Store stores) $ 5,000 $2,500 $15,000 3,000 600 2,100 310 288 289 29 130 90 8988 29888 6,000 Cleveland Division (all) $ 25,000 15,000 750 1,800 70 230 180 350 150 280 280 520 170 320 75 190 250 500 25 70 230 60 200 160 130 50 450 60 940 240 The following fixed expenses are controllable at the divisional level: depreciation-furnishings, computing and billing, warehouse, Insurance, and security. In addition to these expenses, each division annually Incurs $70,000 of computing costs, which are not allocated to Individual stores. The following fixed expenses are controllable only at the company level: depreciation-building, property taxes, and supervisory salaries. In addition to these expenses, each division Incurs costs for supervisory salaries of $150,000, which are not allocated to Individual stores. Buckeye Department Stores Incurs common fixed expenses of $140,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $3,050,000. Required: 1. Prepare a segmented Income statement for Buckeye Department Stores, Inc. 2. How would the segmented Income statement help the president of Buckeye Department Stores manage the company?