**Buckeye Department Stores, Inc.**Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The company’s organization chart and operating data for the year 20X1 are detailed below.**Organization Chart:**- **Buckeye Department Stores** - **Columbus Division** - Olentangy Store - Scioto Store - Downtown Store - **Cleveland Division** - Individual Stores**Operating Data for 20X1** *(in thousands)***Columbus Division:**- Sales Revenue: - Olentangy Store: $5,000 - Scioto Store: $2,500 - Downtown Store: $12,000**Cleveland Division:**- Sales Revenue (all stores): $22,000**Variable Expenses:**- Cost of Merchandise Sold: - Olentangy: 3,800 - Scioto: 2,100 - Downtown: 6,000 - Cleveland: 13,000- Sales Personnel - Salaries: - Olentangy: 90 - Scioto: 60 - Downtown: 170 - Cleveland: 300- Sales Commissions: - Olentangy: 70 - Scioto: 50 - Downtown: 120 - Cleveland: 220**Fixed Expenses:**- Depreciation - Buildings: - Olentangy: 80 - Scioto: 72 - Downtown: 90 - Cleveland: 150- Depreciation - Furnishings: - Olentangy: 30 - Scioto: 26 - Downtown: 45 - Cleveland: 80- Rent: - Olentangy: 200 - Scioto: 150 - Downtown: 300 - Cleveland: 600- Insurance: - Olentangy: 28 - Scioto: 18 - Downtown: 75 - Cleveland: 150- Property Taxes: - Olentangy: 50 - Scioto: 80 - Downtown: 120 - Cleveland: 270This data provides insights into the financial performance and structural organization of **Segmented Income Statement for Buckeye Department Stores, Inc.**The table below breaks down the financial data for Buckeye Department Stores' divisions in thousands of dollars, offering insights into both the Columbus and Cleveland Divisions.| Division | Olentangy Store | Scioto Store | Downtown Store | Cleveland Division (all stores) ||---------------------------------|----------------|--------------|----------------|-------------------------------|| **Sales Revenue** | $5,000 | $2,500 | $12,000 | $22,000 || **Variable Expenses:** | | | | || Cost of Merchandise Sold | 3,000 | 2,100 | 6,000 | 13,000 || Sales Personnel-Salaries | 300 | 90 | 600 | 990 || Sales Commissions | 60 | 30 | 90 | 220 || Utilities | 70 | 78 | 320 | 468 || **Fixed Expenses:** | | | | || Depreciation-Buildings | 136 | 22 | 240 | 398 || Depreciation-Furnishings | 30 | 18 | 60 | 108 || Computing and Billing | 86 | 82 | 180 | 348 || Warehouse | 50 | 88 | 190 | 268 || Insurance | 92 | 90 | 168 | 350 || Property Taxes | 48 | 92 | 150 | 290 || Supervisory Salaries | 60 | 90 | 80 | 230 || Security | 30 | 30 | 88 | 230 |### Additional Information- **Divisional Level Fixed Expenses:** Controllable at the divisional level include depreciation for furnishings, computing and billing, warehouse, and insurance. Each division also incurs $60,000 of computing costs not allocated to individual stores.- **Company Level Fixed Expenses:** Controllable at the company level include depreciation for buildings, property taxes, and supervisory salaries. Each division incurs costs for supervisory salaries of $

A segmented income explanation gives extra detail, separating incomes and costs by specialty unit,…

(in thousands) Columbus Division Scioto Store $2,500 Olentangy Store Downtown Store $12,000 Cleveland Division (all stores) $22,000 $5,000 Sales revenue Variable expenses: Cost of merchandise sold Sales personnel-salaries Sales commissions Utilities Other 3,000 500 2,100 310 50 6,000 760 90 160 13,000 1,700 220 320 270 60 80 70 35 70 130 Fixed expenses: Depreciation-buildings Depreciation-furnishings Computing and billing Warehouse Insurance Property taxes Supervisory salaries Security 130 90 40 80 40 90 260 150 75 210 90 480 310 50 30 70 25 20 110 30 180 460 220 190 910 35 160 30 80 410 80 230 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 $60,000 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 $110,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $130,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $2,050,000. 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? Complete this question by entering your answers in the tabs below.

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...