7 The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: 00-34-07 Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Restin, Inc. $1,144,000 640,400 258,000 108,000 Los Angeles Bay Area Central Valley Division Division Division $328,000 $363,000 $453,000 180,400 200,000 260,000 81,000 91,000 86,000 31,000 36,000 41,000 In addition, the company incurred common fixed costs of $22,800. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $24,400. As a result, revenues increased by $65,600. If variable expenses are tied directly to revenues, the new Los Angeles segment contribution margin is: Multiple Choice $65,300. $40,720. O $66,000. O $90,400 O $41,600