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TB MC Qu. 12-67 The following information was taken from the... The following information was taken from the segmented Income statement of Restin, Inc., and
TB MC Qu. 12-67 The following information was taken from the... 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. $1,168,000 654,800 261,000 111,000 Los Angeles Bay Area Division Division $336,000 $371,000 184,800 205,000 82,000 92,000 32,000 37,000 Central Valley Division $461,000 265,000 87,000 42,000 In addition, the company incurred common fixed costs of $23,100 Assume that the Lc Angeles division increases its promotion expense, a controllable fixed cost, by $25,300. As a result, revenues increased by $67,200. If variable expenses are tied directly to revenues, the new Los Angeles segment profit margin is: Multiple Choice $16.840. $42,140. $92,500 $67,440 $67,200
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