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

Question

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

Quizplus · Accepted Answer

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

The Following Information Was Taken from the Segmented Income Statement