Use the Following Information to Answer the Following Questions

question 40

Multiple Choice

Use the following information to answer the following Questions
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:

In addition, the company incurred common fixed costs of $18,000.
-Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $10,000. As a result, revenues increased by $50,000. If variable expenses are tied directly to revenues, the new Los Angeles segment contribution margin is:

• A) $12,500.
• B) $22,500.
• C) $32,500.
• D) $50,000.
• E) $60,000

Recognize the differences between the markets for "farm products" and "food products".

Analyze the effects of bumper crops and poor crops on farm incomes and prices.

Understand the role of international factors, such as trade relations and the value of the dollar, on U.S. agriculture.

Identify the long-term trends in U.S. agriculture, including changes in farm employment, farm size, and the contribution of agriculture to GDP.

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Definitions:

Note Receivable

A financial claim against another entity that promises to pay the holder a specific sum of money on a certain date or on demand.

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Account Receivable

Resources that a company has yet to receive payment for from customers, regarding delivered goods or services.

Interest Revenue

Earnings received through the act of providing loans or putting money into assets that generate interest.