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Show-Off, Inc., sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general corporate headquarters in Reno. A review of the company's income statement indicates a record year in terms of sales and profits. Management, though, desires additional insights about the individual stores and has asked that Judson Wyatt, a newly hired intern, prepare a segmented income statement. The following information has been extracted from Show-Off's accounting records: • The sales volume, sales price, and purchase price data follow: Reno Sacramento Las Vegas 37,100 units $ 19.00 Sales volume Unit selling price Unit purchase price 41, 100 units $ 17.50 46, 040 units $ 15.25 9.75 8.75 8.75 • The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: , 美 Las Vegas 5% Sacramento 5% Reno Sales commissions 5% Local advertising Local property taxes Sales manager salary Store manager salaries Other noncontrollable costs $16,600 6, 800 $33,500 3,050 $75, e00 9,300 49,500 59, e00 27,700 47,000 8, 800 59, 50e 6,950 Local advertising decisions are made at the store manager level. The sales manager's salary in Sacramento is determined by the Sacramento store manager, in contrast, store manager salaries are set by Show-Off's vice president. •Nontraceable fixed corporate expenses total $293,450. •The company uses a responsibility accounting system.

Show-Off, Inc., sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general corporate headquarters in Reno. A review of the company's income statement indicates a record year in terms of sales and profits. Management, though, desires additional insights about the individual stores and has asked that Judson Wyatt, a newly hired intern, prepare a segmented income statement. The following information has been extracted from Show-Off's accounting records: • The sales volume, sales price, and purchase price data follow: Reno Sacramento Las Vegas 37,100 units $ 19.00 Sales volume Unit selling price Unit purchase price 41, 100 units $ 17.50 46, 040 units $ 15.25 9.75 8.75 8.75 • The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: , 美 Las Vegas 5% Sacramento 5% Reno Sales commissions 5% Local advertising Local property taxes Sales manager salary Store manager salaries Other noncontrollable costs $16,600 6, 800 $33,500 3,050 $75, e00 9,300 49,500 59, e00 27,700 47,000 8, 800 59, 50e 6,950 Local advertising decisions are made at the store manager level. The sales manager's salary in Sacramento is determined by the Sacramento store manager, in contrast, store manager salaries are set by Show-Off's vice president. •Nontraceable fixed corporate expenses total $293,450. •The company uses a responsibility accounting system.

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
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Requlred: 1. Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off. 2. Identify the probable causes for the poor performance of the weakest store. 3. Which of the following should be reviewed in evaluating the performance of the store manager? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off. (Round your answers to the nearest whole dollar.) Show-Off, Inc. Las Vegas Reno Sacramento Variable operating expenses: Total 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 Segment profit margin
Transcribed Image Text:Requlred: 1. Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off. 2. Identify the probable causes for the poor performance of the weakest store. 3. Which of the following should be reviewed in evaluating the performance of the store manager? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the role of Judson Wyatt and prepare a segmented income statement for Show-Off. (Round your answers to the nearest whole dollar.) Show-Off, Inc. Las Vegas Reno Sacramento Variable operating expenses: Total 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 Segment profit margin
Show-Off, Inc., sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general corporate headquarters in Reno. A review of the company's income statement indicates a record year in terms of sales and profits. Management, though, desires additional insights about the individual stores and has asked that Judson Wyatt, a newiy hired intern, prepare a segmented income statement. The following information has been extracted from Show-Off's accounting records: • The sales volume, sales price, and purchase price data follow: Reno Sacramento Las Vegas 37,100 units $ 19.00 8.75 Sales volume Unit selling price Unit purchase price 41, 100 units $ 17.50 8.75 46, 040 units $ 15.25 9.75 •The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: Reno Las Vegas 5% Sacramento 5% Sales commissions 5% Local advertising Local property taxes Sales manager salary Store manager salaries Other noncontrollable costs $75, 000 9,300 49, 500 59, 000 27,700 $16,600 6, 800 $33, 500 3,050 47, 000 8, 800 59,500 6,950 Local advertising decisions are made at the store manager level. The sales manager's salary in Sacramento is determined by the Sacramento store manager, in contrast, store manager salaries are set by Show-Off's vice president. Nontraceable fixed corporate expenses total $293.450. •The company uses a responsibility accounting system.
Transcribed Image Text:Show-Off, Inc., sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general corporate headquarters in Reno. A review of the company's income statement indicates a record year in terms of sales and profits. Management, though, desires additional insights about the individual stores and has asked that Judson Wyatt, a newiy hired intern, prepare a segmented income statement. The following information has been extracted from Show-Off's accounting records: • The sales volume, sales price, and purchase price data follow: Reno Sacramento Las Vegas 37,100 units $ 19.00 8.75 Sales volume Unit selling price Unit purchase price 41, 100 units $ 17.50 8.75 46, 040 units $ 15.25 9.75 •The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: Reno Las Vegas 5% Sacramento 5% Sales commissions 5% Local advertising Local property taxes Sales manager salary Store manager salaries Other noncontrollable costs $75, 000 9,300 49, 500 59, 000 27,700 $16,600 6, 800 $33, 500 3,050 47, 000 8, 800 59,500 6,950 Local advertising decisions are made at the store manager level. The sales manager's salary in Sacramento is determined by the Sacramento store manager, in contrast, store manager salaries are set by Show-Off's vice president. Nontraceable fixed corporate expenses total $293.450. •The company uses a responsibility accounting system.
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