The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Restin, Los Angeles Bay Area Central Valley Inc. Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses $750,000 410,000 210,000 60,000 Multiple Choice Division $200,000 110,000 65,000 15,000 In addition, the company incurred common fixed costs of $18,000. The profit margin controllable by the Central Valley segment manager is: Division $235,000 120,000 75,000 20,000 Division $325,000 180,000 70,000 25,000

Managerial Accounting
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 16E
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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.
Noncontrollable fixed expenses
In addition, the company incurred common fixed costs of $18,000.
Multiple Choice
The profit margin controllable by the Central Valley segment manager is:
$145,000.
$32,000.
O $50,000.
O
O $75,000.
Restin,
Inc.
$750,000
410,000
210,000
60,000
Los Angeles
Division
$200,000
110,000
65,000
15,000
$44,000.
Bay Area
Bay Area
Division
$235,000
120,000
75,000
20,000
Central Valley
Division
$325,000
180,000
70,000
25,000
Transcribed Image Text: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 In addition, the company incurred common fixed costs of $18,000. Multiple Choice The profit margin controllable by the Central Valley segment manager is: $145,000. $32,000. O $50,000. O O $75,000. Restin, Inc. $750,000 410,000 210,000 60,000 Los Angeles Division $200,000 110,000 65,000 15,000 $44,000. Bay Area Bay Area Division $235,000 120,000 75,000 20,000 Central Valley Division $325,000 180,000 70,000 25,000
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