The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Restin, Inc. Los Angeles Division Bay Area Division Central Valley Division
Revenues $1,216,000 $352,000 $387,000 $477,000
Variable operating expenses 683,600 193,600 215,000 275,000
Controllable fixed expenses 267,000 84,000 94,000 89,000
Noncontrollable fixed expenses 117,000 34,000 39,000 44,000
In addition, the company incurred common fixed costs of $23,700. Assuming use of a responsibility accounting system. What amounts should be used to evaluate the performance of the Los Angeles division manager?
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