Reference no: EM132507126

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                              $880,000                           $240,000                            $275,000                     $365,000

Variable operating expenses        482,000                         132,000                                 145,000                       205,000

Controllable fixed expenses         225,000                             70,000                              80,000                          75,000

Noncontrollable fixed expenses        75,000                           20,000                               25,000                          30,000

• In addition, the company incurred common fixed costs of $19,500.

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?