Question
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Inc. Los Angeles Division Bay Area
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
| Restin, Inc. | Los Angeles Division | Bay Area Division | Central Valley Division | ||||||||||
| Revenues | $ | 904,000 | $ | 248,000 | $ | 283,000 | $ | 373,000 | |||||
| Variable operating expenses | 496,400 | 136,400 | 150,000 | 210,000 | |||||||||
| Controllable fixed expenses | 228,000 | 71,000 | 81,000 | 76,000 | |||||||||
| Noncontrollable fixed expenses | 78,000 | 21,000 | 26,000 | 31,000 | |||||||||
In addition, the company incurred common fixed costs of $19,800.
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?
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Company Audit In A Budget Internal Audit For Financial Managers
Authors: Pramod Kesav N
1st Edition
B09QXF42M2
