Question
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Inc.Los Angeles DivisionBay Area DivisionCentral Valley
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Restin, Inc.Los Angeles DivisionBay Area DivisionCentral Valley Division
Revenues$976,000$272,000$307,000$397,000
Variable operating expenses539,600149,600165,000225,000
Controllable fixed expenses237,00074,00084,00079,000
Noncontrollable fixed expenses87,00024,00029,00034,000
In addition, the company incurred common fixed costs of $20,700.
The profit margin controllable by the Central Valley segment manager is:
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Intermediate Accounting Volume 2
Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick
6th Edition
1259105482, 9780071338820
