Advertisement

Buckeye Department Stores, Inc. operates a chain of department stores

Buckeye Department Stores, Inc. operates a chain of department stores Buckeye Department Stores, Inc. operates a chain of department stores in Ohio. The company’s organization chart appears below. Operating data for 20x1 follow. The following fixed expenses are controllable at the divisional level: depreciation—furnishings, computing and billing, warehouse, insurance, and security. In addition to these expenses, each division annually incurs $60,000 of computing costs, which are not allocated to individual stores. The following fixed expenses are controllable only at the company level: depreciation—building, property taxes, and supervisory salaries. In addition to these expenses, each division incurs costs for supervisory salaries of $120,000, which are not allocated to individual stores. Buckeye Department Stores incurs common fixed expenses of $130,000, which are not allocated to the two divisions. Income-tax expense for 20x1 is $1,850,000. Required: BUCKEYE DEPARTMENT STORES, INC.Operating Data for 20x1(in thousands)Columbus DivisionOlentangy StoreScioto StoreDowntown StoreCleveland Division (total for all stores)Sales revenue$5,000$2,800$13,000$24,000Variable expenses:Cost of merchandise sold3,0002,4008,00015,000Sales personnel—salaries4003307201,200Sales commissions605080240Utilities8070150360Other6045120290Fixed expenses:Depreciation—buildings14080270510Depreciation—furnishings7040140330Computing and billing504095200Warehouse6070200490Insurance503580240Property taxes453070210Supervisory salaries170110440920Security404070250 Buckeye Department Stores Columbus Division Cleveland Division Olentangy Scioto Downtown Individual Store Store Store Stores Segments of Company Segments of Columbus Division Buckeye Department Stores, Inc. Scioto Store Downtown Store Cleveland Columbus Division Olentangy Store Not Division Allocated Sales revenue Variable operating expenses Total variable expenses 0$ 0$ $ 0 $ $ 0 $ $ 0$ S Segment contribution margin $ 0 0 Fixed expenses controllable by segment manager $ $ $ $ Total 0 0 $ Profit margin contro

stores

Post a Comment

0 Comments