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	$	880,000		$	240,000		$	275,000			$	365,000
Variable operating expenses		482,000			132,000			145,000				205,000
Controllable fixed expenses		225,000			70,000			80,000				75,000
Noncontrollable fixed expenses		75,000			20,000			25,000				30,000

In addition, the company incurred common fixed costs of $19,500. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $14,500. As a result, revenues increased by $55,200. If variable expenses are tied directly to revenues, the new Los Angeles segment profit margin is:

Multiple Choice

$69,700

$28,340.

$42,840.

$55,200.

$13,840.