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Problem 12-44 Student Name:
Class:
BUCKEYE DEPARTMENT STORES, INC.
Segmented Income Statement
(in thousands)
Segments of Company Segments of Columbus Division
Buckeye
Department Cleveland
Columbus
Olentangy Scioto Downtown Not
Stores, Inc. Division Division Store Store Store Allocated
Sales revenue * * * * * *
Variable expenses:
Cost of merchandise sold * * * * * *
Sales personnel - salaries * * * * * *
Sales commissions * * * * * *
Utilities * * * * * *
Other * * * * * *
Total variable expenses * * * * * *
Segment contribution margin * * * * * *
Less: Fixed expenses controllable
by segment manager:
Depreciation - furnishings * * * * * *
Computing and billing *******
Warehouse * * * * * *
Insurance * * * * * *
Security * * * * * *
Total * * * * * *
Profit margin controllable
by segment manager: *******
Less: Fixed expenses, traceable to
segment, but controllable by others:
Depreciation - buildings * * * * * *
Property taxes * * * * * *
Supervisory salaries *******
Total * * * * * *
Profit margin traceable to segment * * * * * *
Less: Common fixed expenses *
Income before taxes *
Less: Income tax expense *
Net income *
2. How would the segmented income statement help the president of
Buckeye Department Stores manage the company?
Problem 12-44 Student Name:
Class:
BUCKEYE DEPARTMENT STORES, INC.
Segmented Income Statement
(in thousands)
Segments of Company Segments of Columbus Division
Buckeye
Department Cleveland Columbus Olentangy Scioto Downtown Not
Stores, Inc. Division Division Store Store Store Allocated
Variable expenses:
Cost of merchandise sold 69,000 36,000 33,000 9,000 6,000 18,000
by segment manager:
Depreciation - furnishings 1,680 870 810 240 150 420
Computing and billing 1,215 630 585 120 90 225 150
Less: Fixed expenses, traceable to
segment, but controllable by others:
Depreciation - buildings 2,790 1,410 1,380 360 270 750
Property taxes 915 510 405 105 60 240
2. How would the segmented income statement help the president of
Buckeye Department Stores manage the company?
Instructor
McGraw-Hill/Irwin
The segmented income statement would help the president of Buckeye
