The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los Angeles Bay Area Central Valley Restin, Inc. $856,000 Division Division Division Revenues $232,000 $267,000 $357,000 467,600 127,600 140,000 200,000 Variable operating expenses Controllable fixed expenses 222,000 69,000 79,000 74,000 Noncontrollable fixed expenses 72,000 19,000 24,000 29,000 In addition, the company incurred common fixed costs of $19,200. Which of the following amounts should be used to evaluate whether Restin, Inc., should continue to invest company resources in the Los Angeles division? Multiple Choice O $20,000. $16,400. $10,000. $104,400. $35,400.
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los Angeles Bay Area Central Valley Restin, Inc. $856,000 Division Division Division Revenues $232,000 $267,000 $357,000 467,600 127,600 140,000 200,000 Variable operating expenses Controllable fixed expenses 222,000 69,000 79,000 74,000 Noncontrollable fixed expenses 72,000 19,000 24,000 29,000 In addition, the company incurred common fixed costs of $19,200. Which of the following amounts should be used to evaluate whether Restin, Inc., should continue to invest company resources in the Los Angeles division? Multiple Choice O $20,000. $16,400. $10,000. $104,400. $35,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![MC Qu. 12-66 The following information was taken from...
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Restin,
Inc.
$856,000
Los Angeles
Division
Bay Area
Division
Central Valley
Division
Revenues
$232,000
$267,000
$357,000
Variable operating expenses
467,600
127,600
140,000
200,000
222,000
69,000
79,000
74,000
Controllable fixed expenses
Noncontrollable fixed expenses
72,000
19,000
24,000
29,000
In addition, the company incurred common fixed costs of $19,200.
Which of the following amounts should be used to evaluate whether Restin, Inc., should continue to invest company resources in the Los Angeles division?
Multiple Choice
O
O
O
O
$20.000.
$16,400.
$10.000.
$104,400.
$35,400.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F027a530b-cb59-4922-b3e1-9ec9990a717c%2F1d6a5374-11f3-481b-828c-b31e2d5f7ef6%2Fkmxa59p_processed.png&w=3840&q=75)
Transcribed Image Text:MC Qu. 12-66 The following information was taken from...
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Restin,
Inc.
$856,000
Los Angeles
Division
Bay Area
Division
Central Valley
Division
Revenues
$232,000
$267,000
$357,000
Variable operating expenses
467,600
127,600
140,000
200,000
222,000
69,000
79,000
74,000
Controllable fixed expenses
Noncontrollable fixed expenses
72,000
19,000
24,000
29,000
In addition, the company incurred common fixed costs of $19,200.
Which of the following amounts should be used to evaluate whether Restin, Inc., should continue to invest company resources in the Los Angeles division?
Multiple Choice
O
O
O
O
$20.000.
$16,400.
$10.000.
$104,400.
$35,400.
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