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 $ 832,000 $ 224,000 $ 259,000 $ 349,000 Variable operating expenses 453,200 123,200 135,000 195,000 Controllable fixed expenses 219,000 68,000 78,000 73,000 Noncontrollable fixed expenses 69,000 18,000 23,000 28,000 In addition, the company incurred common fixed costs of $18,900. The profit margin controllable by the Central Valley segment manager is:
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