Question
Please provide with proper workings..Thank you The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los
Please provide with proper workings..Thank you
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los Bay Central Restin, Angeles Area Valley Inc. Division Division Division Revenues $760,000 $200,000 $235,000 $325,000 Variable operating expenses 410,000 110,000 120,000 180,000 Controllable fixed expenses 210,000 65,000 75,000 70,000 Noncontrollable fixed expenses 60,000 15,000 20,000 25,000
In addition, the company incurred common fixed costs of $18,000.
1. Assuming use of a responsibility accounting system, which of the following amounts should be used to evaluate the performance of the Los Angeles division manager? A. $4,000. B. $8,000. C. $10,000. D. $25,000. E. $90,000.
2. Which of the following amounts should be used to evaluate whether Restin, Inc., should continue to invest company resources in the Los Angeles division? A. $4,000. B. $8,000. C. $10,000. D. $25,000. E. $90,000
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