Midtown Retail operates a retail store in Kansas City, MO., and S ouis, MO.The following information relates to the Kansas City facility: · The store sold 65,000 units at $18.00 each, after having purchased the units from various suppliers for $12.50.Kansas City salespeople are paid a 5% commission based on gross sales dollars. · Kansas City's sales manager oversees the placement of local advertising contracts, which totaled $54,000 for the year.Local property taxes amounted to $14,500. · The sales manager's $65,000 salary is set by Kansas City's store manager.In contrast, the store manager's $134,000 salary is determined by Midtown's vice president. · Kansas City incurred $6,800 of other noncontrollable costs. · Nontraceable (common) corporate overhead totaled $68,000. Midtown's corporate headquarters is located in S ouis, and the company uses responsibility accounting to evaluate performance. Required: Prepare a segmented income statement for the Kansas City store, being sure to disclose the segment contribution margin, the segment controllable profit margin, and segment profit margin.
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