The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los Angeles Bay Area Central Valley Restin, Inc. $856,000 Division Division Division Revenues $232,000 $267,000 $357,000 467,600 127,600 140,000 200,000 Variable operating expenses Controllable fixed expenses 222,000 69,000 79,000 74,000 Noncontrollable fixed expenses 72,000 19,000 24,000 29,000 In addition, the company incurred common fixed costs of $19,200. Which of the following amounts should be used to evaluate whether Restin, Inc., should continue to invest company resources in the Los Angeles division? Multiple Choice O $20,000. $16,400. $10,000. $104,400. $35,400.
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: Los Angeles Bay Area Central Valley Restin, Inc. $856,000 Division Division Division Revenues $232,000 $267,000 $357,000 467,600 127,600 140,000 200,000 Variable operating expenses Controllable fixed expenses 222,000 69,000 79,000 74,000 Noncontrollable fixed expenses 72,000 19,000 24,000 29,000 In addition, the company incurred common fixed costs of $19,200. Which of the following amounts should be used to evaluate whether Restin, Inc., should continue to invest company resources in the Los Angeles division? Multiple Choice O $20,000. $16,400. $10,000. $104,400. $35,400.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...
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