he 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. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $27,100. As a result, revenues increased by $70,400. If variable expenses are tied directly to revenues, the new Los Angeles segment contribution margin is:

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.