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The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los Angeles Bay Area Division Central Valley
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los Angeles Bay Area Division Central Valley Restin, Division Division Inc. $1,192,000 $344,000 $379,000 $469,000 Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses 669,200 264,000 114,000 210,000 93,000 38,000 189,200 270,000 83,000 33,000 88,000 43,000 In addition, the company incurred common fixed costs of $23,400. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $26,200. As a result, revenues ncreased by $68,800. If variable expenses are tied directly to revenues, the new Los Angeles segment contribution margin is
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