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The Following Information Was Taken from the Segmented Income Statement

Question 44

Multiple Choice

The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:  Los  Bay  Central  Restin,  Angeles  Area  Valley  Inc.  Division  Division  Division  Revenues $750,000$200,000$235,000$325,000 Variable operating expenses 410,000110,000120,000180,000 Controllable fixed expenses 210,00065,00075,00070,000 Noncontrollable fixed expenses 60,00015,00020,00025,000\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.
Which of the following amounts should be used to evaluate whether Restin, Inc., should continue to invest company resources in the Los Angeles division?


A) $4,000.
B) $8,000.
C) $10,000.
D) $25,000.
E) $90,000.

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