Use the Following Information to Answer the Following Questions

question 55

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.
-Assuming use of a responsibility accounting system, which of the following amounts should be used to evaluate the performance of the Los Angeles division manager?

• A) $4,000.
• B) $8,000.
• C) $10,000.
• D) $25,000.
• E) $90,000.

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Definitions:

Offer

A proposal presented by one party to another as a basis for negotiations to form a contract, requiring clear terms that can be accepted.

24-Hour Schedule

A rotation or work schedule that covers all hours of the day across a team or installation, ensuring operations or service availability around the clock.

Output Contract

An agreement between a seller and a buyer where the seller agrees to sell all the production to the buyer, who in turn agrees to purchase the entire output.

Operating Schedule

A plan or timetable outlining the hours or periods a facility, service, or piece of equipment is in operation.