Find the profit margin controllable by the central valley

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Reference no: EM132507122

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                   $976,000                           $272,000                  $307,000                              $397,000

Variable operating expenses  539,600                           149,600                   165,000                              225,000

Controlla fixed expenses        237,000                             74,000                    84,000                              79,000

Noncontrollable fixed expenses 87,000                                24,000                       29,000                         34,000

  • In addition, the company incurred common fixed costs of $20,700.

Question 1: The profit margin controllable by the Central Valley segment manager is:

Reference no: EM132507122

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