Evaluate the performance of the los angeles

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

Restin, Inc.Los                                     Angeles Division                                           Bay Area Division                 Central Valley Division

Revenues$1,048,000                    $296,000                                                   $331,000                             $421,000

Variable operating expenses 582,800      162,800                                          180,000                                      240,000

Controllable fixed expenses 246,000           77,000                                                87,000                                  82,000

Noncontrollable fixed expenses 96,000          27,000                                             32,000                                 37,000

  • In addition, the company incurred common fixed costs of $21,600.

Question 1: 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?

Reference no: EM132506958

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