2.

The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:

	Restin, Inc.		Los Angeles Division				Bay Area Division			Central Valley Division
Revenues	$	1,024,000		$	288,000		$	323,000			$	413,000
Variable operating expenses		568,400			158,400			175,000				235,000
Controllable fixed expenses		243,000			76,000			86,000				81,000
Noncontrollable fixed expenses		93,000			26,000			31,000				36,000

In addition, the company incurred common fixed costs of $21,300. The profit margin controllable by the Central Valley segment manager is:

Multiple Choice

• $97,000.

• $178,000.

• $61,000.

• $53,900.

• $39,700.