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The following information was taken from the segmented income statement of Restin, Incorporated, and the company's three divisions: Restin, Incorporated Los Angeles Division Bay Area
The following information was taken from the segmented income statement of Restin, Incorporated, and the company's three divisions:
Restin, Incorporated Los Angeles Division Bay Area Division Central Valley Division
Revenues $ $ $ $
Variable operating expenses
Controllable fixed expenses
Noncontrollable fixed expenses
In addition, the company incurred common fixed costs of $
Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $ As a result, revenues increased by $ If variable expenses are tied directly to revenues, what is the new Los Angeles segment profit margin?
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