The Following Information Was Taken from the Segmented Income Statement

question 48

Multiple Choice

The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions: $\begin{array}{cccc} && \text { Los } & \text { Bay } & \text { Central } \\&\text { Restin, } & \text { Angeles } & \text { Area } & \text { Valley } \\&\text { Inc. } & \text { Division } & \text { Division } & \text { Division }\\\hline\text { Revenues } & \$ 750,000 & \$ 200,000 & \$ 235,000 & \$ 325,000 \\\text { Variable operating expenses } & 410,000 & 110,000 & 120,000 & 180,000 \\\text { Controllable fixed expenses } & 210,000 & 65,000 & 75,000 & 70,000 \\\text { Noncontrollable fixed expenses } & 60,000 & 15,000 & 20,000 & 25,000\end{array}$ 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:

Research

The systematic investigation and study of materials and sources in order to establish facts and reach new conclusions.

Relationship Maintenance

involves actions and strategies to keep a positive and ongoing connection with individuals or groups.

Stewardship

The responsible management and careful utilization of resources, often emphasizing sustainability and ethical practices.

Programming

The process of creating and scheduling content for television, radio, or online platforms, focusing on audience engagement and ratings.