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The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Los Angeles Central Valley Bay Area
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Los Angeles Central Valley Bay Area Division Division Division Inc $1,096,000 $312,000 $347,000 $437,000 Revenues Variable operating expenses Controllable fixed expenses 190,000 611,600 171,600 250,000 252,000 89,000 84,000 79,000 Noncontrollable fixed expenses 102,000 29,000 34,000 39,000 In addition, the company incurred common fixed costs of $22,200. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $22,600. As a result, revenues increased by $62,400. If variable expenses are tied directly to revenues, the new Los Angeles segment contribution margin is
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