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The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Revenues Variable operating expenses Controllable fixed expenses
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Restin, Inc. $1,096,000 611,600 252,000 102,000 Los Angeles Bay Area Division Division $312,000 $347,000 171,600 190,000 79,000 89,000 29,000 34,000 Central Valley Division $437,000 250,000 84,000 39,000 In addition, the company incurred common fixed costs of $22,200. 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? Multiple Choice $32,400 O $25,000. $50,000. $61.400. O o $140,400
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