The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions

In addition, the company incurred common fixed costs of $18,000.

Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $10,000. As a result, revenues increase by $50,000. 

If variable expenses are tied directly to revenues, what would be the  new Los Angeles segment profit margin?
 

Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Bay Area Central Valley Division Los Angeles Restin, Inc. Division Division $750,000 $200,000 $235,000 $325,000 410,000 110,000 120,000 180,000 70,000 210,000 65,000 75,000 60,000 15,000 20,000 25,000