Problem 12-45 Prepare Segmented Income Statement; Contribution-Margin Format; Retail (LO 12-5) Buckeye Department Stores, Inc., operates a chain of department stores in Ohio. The company's organization chart appears below. Operating data for 20x1 follow. Buckeye Department Stores Columbus Division Olentangy Store Scioto Store Downtown Store Sales revenue Variable expenses: Cost of merchandise sold Sales personnel-salaries Sales commissions Cleveland Division BUCKEYE DEPARTMENT STORES, INC. Operating Data for 20x1 (in thousands) Columbus Division Individual Stores Olentangy Scioto Store Store $ 8,000 $2,700 Downtown Store $13,000 6,000 2,300 7,000 Cleveland Division (all stores) $ 21,000 10,000 500 340 750 1,200 50 50 80 210 80 70 130 330 60 55 100 260 Utilities Other Fixed expenses: Depreciation-buildings 110 80 210 520 Depreciation-furnishings 90 40 120 300 Computing and billing 60 40 65 170 Warehouse 80 70 260 500 Insurance 60 45 80 210 Property taxes 55 40 70 180 Supervisory salaries Security 180 40 150 40 450 70 950 220 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 $120,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $150,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $2,750,000. 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a segmented income statement for Buckeye Department Stores, Inc. (Enter your answers in thousands.) Segments of Company Segments of Columbus Division Buckeye Department Stores, Inc. Cleveland Division Columbus Olentangy Division Store Scioto Store Downtown Store Not Allocated Variable operating expenses: Total variable expenses Segment contribution margin Fixed expenses controllable by segment manager: Total Profit margin controllable by segment manager Fixed expenses, traceable to segment, but controllable by others: Total Profit margin traceable to segment Required 1 Required 2 >