14. R Multiple Choice (4 Points) SO 11. All of the following are disadvantages of decentralizing except: a duplication of administrative services. b. quicker decision making at the division level e loss of control at top management levels. d. managers at the division level might make decisions that are in their best interest even if the decision is not in the best interest of the company as a whole. e. None of the answer choices is correct 12. An organizational segment that is responsible for costs and revenues is known as a. a financing center. b. a profit center. c. a cost center dan investment center. e. None of the answer choices is correct. Exhibit 11-1 Ashville Company has two divisions --Bikes and Trikes. Ashville Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Sales Cost of goods sold Gross margin Allocated overhead (from corporate) Selling and administrative expenses Operating income Income tax expense (40%) Net income Bikes Division $2,400,000 1.400.000 1,000,000 270,000 190,000 540,000 216,000 $ 324,000 Trikes Division $1,000,000 530,000 470,000 170.000 140.000 160,000 64.000 $ 96,000 13. Refer to Exhibit 11-1. Using the segmented income statements, what is the profit margin ratio for the Bikes Division to the nearest tenth of a percent)? a. 13.5 b. 41.7% c. 22.5% d. 58.3% e. None of the answer choices is correct