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MC Qu. 12-67 The following information was taken from... The following information was taken from the segmented income statement of Restin, Inc., and the
MC Qu. 12-67 The following information was taken from... The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Restin, Inc. Los Angeles Division Bay Area Central Valley Division Division $808,000 $216,000 $251,000 $341,000 438,800 118,800 130,000 190,000 216,000 67,000 77,000 72,000 66,000 17,000 22,000 27,000 In addition, the company incurred common fixed costs of $18,600. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $11,800. As a result, revenues increased by $54,000. If variable expenses are tied directly to revenues, the new Los Angeles segment contribution margin is: Multiple Cholce $36,600. $52,000. $40,200. $63,800 $25,700.
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