Doggy world operates a chain of pair store in the Midwest. The manager of each store reports

P21-20A Doggy
world operates a chain of pair store in the Midwest. The manager of each store
reports to the regional manager, who, in turn, reports to the headquarters in
the Milwaukee, Wisconsin. The actual income statements for the Dayton store,
the Ohio region (include the Dayton store), and the company as a whole
(including the Ohio region) for July 2011 are as follows:
DOGGY WORLD
Income statement
For the month ended July 31, 2011
Dayton Ohio Companywide
Revenue $158,400 $1,760,000 $4,400,000
Expense:
Regional manager/headquarters office $
—- $58,000 $122,000
Cost of materials 85,536 880,000 1,760,000
Salary expense 41,184 440,000 1,100,000
Depreciation expense 7,800 91,000 439,000
Utility expense 4,000 46,600 264,000
Rent expense 2,500 34,500 178,000
Total expenses 141,020 1,550,100 3,863,000
Operating income $17,380 $209,900 $537,000

Budgeted amounts for July were as
follows:
DOGGY WORLD
Income statement
For the month ended July 31, 2011
Dayton Ohio Companywide
Revenue 173,400 1,883,000 4,650,000
Expense:
Regional manager/headquarters office —- 64,600 124,000
Cost of materials 91,902 1,035,650 2,092,500
Salary expense 41,616 470,750 1,162,500
Depreciation expense 7,800 87,500 446,000
Utility expense 4,900 54,600 274,000
Rent expense 3,400 32,700 169,000
Total expenses 149,618 1,745,800 4,268,000
Operating income 23,782 137,200 382,000

Requirement
Prepare a report for July 2011
that shows the performance of the Dayton store, the Ohio region, and the
company as a whole.

 

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