Reference no: EM132598404

Fog City Retail operates a retail store in Phoenix, Las Vegas, and Portland. The following information relates to the Phoenix facility:

• The store sold 65,000 units at $18.00 each, after having purchased the units from various suppliers for $12.50. Phoenix salespeople are paid a 5% commission based on gross sales dollars.
• Phoenix'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 Phoenix's store manager. In contrast, the store manager's $134,000 salary is determined by Fog City's vice president.
• Phoenix incurred $6,800 of other noncontrollable costs.
• Nontraceable (common) corporate overhead totaled $68,000.

Fog City's corporate headquarters is located in Portland, and the company uses responsibility accounting to evaluate performance.

Required:

Question 1: Prepare a segmented income statement for the Phoenix store, being sure to disclose the segment contribution margin, the segment controllable profit margin, and segment profit margin.