The Following Information Was Taken from the Segmented Income Statement

question 58

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.
The profit margin controllable by the Central Valley segment manager is:

• A) $32,000.
• B) $44,000.
• C) $50,000.
• D) $75,000.
• E) $145,000.

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Definitions:

Weights

Objects, often made of metal, used during exercise to increase strength or resistance training.

Heights

The measurement of how tall something or someone is, or the vertical distance from the bottom to the top.

Association

A statistical term indicating a relationship or linkage between two or more variables, without implying causation.

Linear Association

A relationship between two variables where the rate of change in one variable is constant with respect to the other.