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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. $1,144,000 640,400 258,000 108,000 Los Angeles Bay Area Central Valley Division Division Division $328,000 $363,000 $453,000 180,400 200,000 260,000 81,000 91,000 86,000 31,000 36,000 41,000 In addition, the company incurred common fixed costs of $22.800. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $24,400. As a result, revenues increased by $65,600. If variable expenses are tied directly to reven the new Los Angeles segment profit margin is: Multiple Choice $40,720, $90,000 $65,600 O $65,120. $16,320
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