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 Cleveland Division Olentingy Store Scioto Store Downtown Store Individual Stores BUCKEYE DEPARTMENT STORES, INC. Operating Data for 20x1 (in thousands) Columbus Division Olentangy Scioto Downtown Store Store Store $6,000 52,400 311,000 Cleveland Division all stores) $ 20,000 Sales revenue Variable expenses Cost of merchandise sold sales personnel salaries Sales comissions Utilities other Fixed expenses . 4,000 400 50 90 60 2,000 320 40 60 25 7.000 770 100 12,000 11.600 210 330 260 150 120 BUCKEYE DEPARTMENT STORES, INC. Operating Data for 20x1 (in thousands) Columbus Division Olentangy Scioto Downtown Store Store Store $6,000 $2,400 $11,000 Cleveland Division (all stores) $ 20,000 4,000 400 50 90 60 2,000 320 40 60 25 7,000 770 100 150 120 12,000 1,600 210 330 260 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 120 80 30 70 30 25 150 40 100 40 40 60 15 10 100 40 240 140 85 220 100 90 420 90 490 300 170 470 210 180 900 220 The following fixed expenses are controllable at the divisional levels depreciation-furnishings, computing and billing, warehouse, Insurance, and security. In addition to these expenses, each division annually incurs $50.000 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 $140,000, which are not allocated to the two divisions. Income tax expense for 20x1 is $1,250,000 Required: 1. Prepare a segmented income statement for Buckeye Department Stores, Inc. ? How is the conmontert innmectatoment holn the recipient farveve nanamant Cinroe manane the remnan? 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 $50,000 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 $140,000, which are not allocated to the two divisions, Income-tax expense for 20x1 is $1,250,000 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 Cleveland Columbus Olentangy Scioto Store Department Downtown Division Division Store Stores, Inc Allocated Not Store Variable operating expenses Segments of Company Segments of Columbus Division Buckeye Department Stores, Inc. Cleveland Division Columbus Division Olentangy 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 lo segment 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