The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los Angeles Central Valley Restin, Inc. Bay Area Division Division $200,000 $750,000 $235,000 410,000 110,000 210,000 60,000 Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Multiple Choice $25.000. $8,000. 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? $4,000. $90,000. 65,000 15,000 O $10,000. 120,000 75,000 20,000 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 Central Valley Restin, Inc. Bay Area Division Division $200,000 $750,000 $235,000 410,000 110,000 210,000 60,000 Revenues Variable operating expenses Controllable fixed expenses Noncontrollable fixed expenses Multiple Choice $25.000. $8,000. 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? $4,000. $90,000. 65,000 15,000 O $10,000. 120,000 75,000 20,000 Division $325,000 180,000 70,000 25,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7)
Transcribed Image Text:The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Los Angeles
Division
Bay Area Central Valley
Division
$200,000
$235,000
110,000
120,000
75,000
20,000
Revenues
Variable operating expenses
Controllable fixed expenses.
Noncontrollable fixed expenses
Multiple Choice
O $25,000.
$8,000.
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?
$4,000.
$90,000.
Restin,
Inc.
$750,000
410,000
210,000
60,000
$10,000.
65,000
15,000
Division
$325,000
180,000
70,000
25,000
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