Show-Off, Inc., sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general

[answerhappygod]

Show Off Inc Sells Merchandise Through Three Retail Outlets In Las Vegas Reno And Sacramento And Operates A General 1 (60.09 KiB) Viewed 11 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: Reno Sales volume Las Vegas 37,000 units $ 12.00 Unit selling price Sacramento 41,000 units 46,000 units $11.00 $ 5.50 9.50 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: Sales commissions Las Vegas 6% Reno 6% Sacramento 6% advertising $ 22,000 $48,000 $ 11,000 4,500 Local property taxes Sales manager salary 2,000 6,000 32,000 Store manager salaries 31,000 39,000 38,000 Other noncontrollable costs 5,000 4,600 17,000 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 Which of the following should be reviewed in evaluating the performance of the store manager?