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, INC. Operating Data for 20x1 (in thousands) Columbus Division Olentangy Store Scioto Store Downtown Store Cleveland Division (total for all stores) Sales revenue $ 5,000 $ 2,400 $ 11,000 $ 21,000 Variable expenses: Cost of merchandise sold 3,000 2,000 6,000 12,000 Sales personnel—salaries 400 300 750 1,600 Sales commissions 50 40 90 200 Utilities 80 60 150 300 Other 60 35 120 250 Fixed expenses: Depreciation—buildings 120 90 250 470 Depreciation—furnishings 80 50 140 290 Computing and billing 40 30 75 160 Warehouse 70 60 200 450 Insurance 40 25 90 200 Property taxes 35 20 80 170 Supervisory salaries 150 100 400 900 Security 30 30 80 210 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 $100,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $120,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $1,950,000. Required: Prepare a segmented income statement for Buckeye Department Stores, Inc.

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, INC. Operating Data for 20x1 (in thousands) Columbus Division Olentangy Store Scioto Store Downtown Store Cleveland Division (total for all stores) Sales revenue $ 5,000 $ 2,400 $ 11,000 $ 21,000 Variable expenses: Cost of merchandise sold 3,000 2,000 6,000 12,000 Sales personnel—salaries 400 300 750 1,600 Sales commissions 50 40 90 200 Utilities 80 60 150 300 Other 60 35 120 250 Fixed expenses: Depreciation—buildings 120 90 250 470 Depreciation—furnishings 80 50 140 290 Computing and billing 40 30 75 160 Warehouse 70 60 200 450 Insurance 40 25 90 200 Property taxes 35 20 80 170 Supervisory salaries 150 100 400 900 Security 30 30 80 210 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 $100,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $120,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $1,950,000. Required: Prepare a segmented income statement for Buckeye Department Stores, Inc.

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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, INC.
Operating Data for 20x1
(in thousands)
	Columbus Division
	Olentangy Store	Scioto Store	Downtown Store		Cleveland Division (total for all stores)
Sales revenue	$	5,000		$	2,400	$	11,000	$	21,000
Variable expenses:
Cost of merchandise sold		3,000			2,000		6,000		12,000
Sales personnel—salaries		400			300		750		1,600
Sales commissions		50			40		90		200
Utilities		80			60		150		300
Other		60			35		120		250
Fixed expenses:
Depreciation—buildings		120			90		250		470
Depreciation—furnishings		80			50		140		290
Computing and billing		40			30		75		160
Warehouse		70			60		200		450
Insurance		40			25		90		200
Property taxes		35			20		80		170
Supervisory salaries		150			100		400		900
Security		30			30		80		210

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 $100,000, which are not allocated to individual stores.

Buckeye Department Stores incurs common fixed expenses of $120,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $1,950,000.

Required:

Prepare a segmented income statement for Buckeye Department Stores, Inc.

Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The company's organization cha
Operating data for 20x1 follow.
Buckeye Department Stores
Columbus Division
Cleveland Division
Olentangy
Store
Scioto
Downtown
Store
Individual
Store
Stores
BUCKEYE DEPARTMENT STORES, INC.
Operating Data for 20x1
(in thousands)
Columbus Division
Olentangy
Scioto
Downtown
Cleveland Division (total for
all stores)
$
Store
Store
Store
Sales revenue
$ 5,000
$ 2,400
$11,000
21,000
Variable expenses:
Cost of merchandise sold
3,000
400
2,000
6,000
12,000
1,600
Sales personnel-salaries
Sales commissions
300
750
50
40
90
200
Utilities
80
60
150
300
Other
Fixed expenses:
Depreciation-buildings
Depreciation-furnishings
Computing and billing
Warehouse
60
35
120
250
120
90
250
470
80
50
140
290
40
30
75
160
70
60
200
450
Insurance
40
25
90
200
Property taxes
Supervisory salaries
Security
35
20
80
170
150
100
400
900
30
30
80
210

Segments of Company
Segments of Columbus Division
Buckeye
Department
Stores, Inc.
Cleveland
Division
Columbus
Division
Olentangy
Store
Downtown
Store
Not
Allocated
Scioto Store
Variable operating expenses:
Total variable expenses
0 $
0 $
2$
0 $
2$
Segment contribution margin
$
0 $
$
$
0 $
$
Fixed expenses controllable by segment manager:
Total
0 $
$
0 $
0 $
0 $
0 $
0 $
0 $
0 $
Profit margin controllable by segment manager
Fixed expenses, traceable to segment, but
controllable by others:
$
Total
$
0 $
$
0 $
0 $
0 $
Profit margin traceable to segment
$
0 $
$
$
0 $
$
$
%24
%24

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