- Show Off Inc Sells Merchandise Through Three Retail Outlets In Las Vegas Reno And Sacramento And Operates A General 1 (61.36 KiB) Viewed 14 times
- Show Off Inc Sells Merchandise Through Three Retail Outlets In Las Vegas Reno And Sacramento And Operates A General 2 (60.4 KiB) Viewed 14 times
- Show Off Inc Sells Merchandise Through Three Retail Outlets In Las Vegas Reno And Sacramento And Operates A General 3 (32.23 KiB) Viewed 14 times
- Show Off Inc Sells Merchandise Through Three Retail Outlets In Las Vegas Reno And Sacramento And Operates A General 4 (19.97 KiB) Viewed 14 times
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. Sales volume Las Vegas 37,000 units $ 12.00 Reno 41,000 units $11.00 5.50 Sacramento 46,000 units 9.50 Unit selling price $ Unit purchase price 5.50 6.00 • The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs: Reno Las Vegas 6% Sacramento 6% Sales commissions Local advertising Local property taxes Sales manager salary 6% $ 22,000 2,000 $ 11,000 4,500 $48,000 6,000 32,000 Store manager salaries i 31,000 39,000 38,000 Other noncontrollable costs 5,800 4,600 17,800 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 $192,300. • The
company uses a responsibility accounting system. Required: 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) Reno Show-Off, Inc. Las Vegas Sacramento
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 whol 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 Required 2 >
Required 1 Required 2 Required 3 Identify the probable causes for the poor performance of the weakest store. (Select "Yes" if the
statement is a probable cause for t poor performance of the weakest store, and "No" if it is not a probable cause.) The markup on cost of the other two outlets at Las Vegas and Reno is much higher. The store manager's salary is the highest for Sacramento's in terms of units sold The return on the outlay of advertising and sales manager's salary is inadequate. The other noncontrollable cost of Sacramento's outlet is very high compared to that of the outlets at Las Vegas and Reno. Required 1 Required 3 >
Complete this
question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Which of the following should be reviewed in evaluating the performance of the store manager? < Required 2 should be reviewed in evaluating the performance of the store manager Reques 3