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 Division $235,000 120,000 75,000 20,000 Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Multiple Choice $10,000. Restin, Inc. $750,000 410,000 $25,000. 210,000 60,000 In addition, the company incurred common fixed costs of $18,000. 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? Division $200,000 110,000 65,000 15,000 Division $325,000 180,000 70,000 25,000
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 Division $235,000 120,000 75,000 20,000 Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Multiple Choice $10,000. Restin, Inc. $750,000 410,000 $25,000. 210,000 60,000 In addition, the company incurred common fixed costs of $18,000. 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? Division $200,000 110,000 65,000 15,000 Division $325,000 180,000 70,000 25,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Division
Division
$750,000
$200,000
$235,000
410,000
110,000
120,000
210,000
75,000
60,000
20,000
Revenues
Variable operating expenses
Controllable fixed expenses
Noncontrollable fixed expenses
Multiple Choice
In addition, the company incurred common fixed costs of $18,000.
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?
$10,000.
65,000
15,000
$25,000.
Division
$325,000
180,000
70,000
25,000
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