Answer Happy

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 Unit selling price Las Vegas 37,000 units $ 12.00 Reno 41,000 units $ 11.00 Sacramento 46,000 units $9.50 6.00 Unit purchase price 5.50 5.50 • The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other noncontrollable (but traceable) costs Reno Sales commissions Las Vegas 6% Sacramento 6% $ 22,000 $48,000 Local advertising Local property taxes Sales manager salary $ 11,000 4,500 2,000 6,000 32,000 Store manager salaries 31,000 39,000 38,000 Other noncontrollable costs 5,800 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 6%
Answer is not complete. 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 whe Show-Off, Inc. Las Vegas Reno Sacramento Sales revenue $1,332,000 $444,000 $ 451,000 $ 437,000 Variable operating expenses: Sales commissions S 79,920 $ $ 26,220 26,640 $ 203,500 27,060 225,500 Cost of goods sold 705,000 276,000 Total 784,920 $ 230,140 $ 547,080 $ 213,860 $ 252,560 198,440 $ 302,220 $ 134,780 Segment contribution margin Fixed expenses controllable by segment manager: Local advertising 22,000 $ 81,000 S 11,000 $ 32,0000 48,000 32,000 Sales manager salary. 03 Total 22,000 S 80,000 113,000 $ 11,000 $ 434,080 $ 202,860 Profit margin controllable by segment manager $ 176,440 $ 54,780 Fixed expenses traceable to segment, but controllable by others: Local property taxes 12,500 $ S 6,000 Store manager salaries 4,500 31,000✔ 5,800 2,000 39,000 38,000 Other noncontrollable costs 4,600✔ 17,800 Total 61,800 Segment profit margin (7,020) Common fixed expenses 33 33 303 S $ S $ S $ $ $ $ 108,000 28,200 148,700 285,380 $ 192,300 93,080 $ 41,300 161,560 $ S 45,600 $ 130,840 S S