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TB MC Qu. 14-57 San Ruiz Interiors provides design services... San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce
TB MC Qu. 14-57 San Ruiz Interiors provides design services... San Ruiz Interiors provides design services to residential and commercial clients. The residential services produce a contribution margin of $500,000 and have traceable fixed operating costs of $560,000. Management is studying whether to drop the residential operation. If closed, the fixed operating costs will fall by $450,000 and San Ruiz' income will: Multiple Choice O Increase by $60,000. O Increase by $50,000. O Increase by $390.000. O decrease by $50.000. O decrease by $390,000.TB MC Qu. 12-64 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: Restin, Los Angeles Bay Area Central Valley Inc. Division Division Division Revenues $1, 072, 000 $304, 090 $339, 090 $429, 090 Variable operating expenses 597, 200 167, 200 185, 000 245, 090 Controllable fixed expenses 249, 000 78, 090 88, 090 83,090 Noncontrollable fixed expenses 99, 000 28, 090 33, 000 38, 090 In addition, the company incurred common fixed costs of $21,900. The profit margin controllable by the Central Valley segment manager is: Multiple Choice O $101,000. O $63,000. O $41,100. O $55,700. O $184,000
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