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MC Qu. 12-67 The following information was taken from... 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. 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: Multiple Choice $44,980. $96,100 $71,450. $69,000. $41,900.

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MC Qu. 12-67 The following information was taken from... The following information was taken from th...

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