write my assignment 18698
In addition, the company incurred common fixed costs of $18,000.
43. Bay Area’s segment profit margin is:
A. $14,000.
B. $18,000.
C. $20,000.
D. $40,000.
E. $115,000.
Answer: C
44. The profit margin controllable by the Central Valley segment manager is:
A. $32,000.
B. $44,000.
C. $50,000.
D. $75,000.
E. $145,000.
Answer: D
45. 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.
Answer: D
46. 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.
Answer: C
47. Assume that the Los Angeles division increases its promotion expense, a controllable fixed cost, by $10,000. As a result, revenues increase by $50,000. If variable expenses are tied directly to revenues, the new Los Angeles segment profit margin is:
A. $12,500.
B. $22,500.
C. $32,500.
D. $50,000.
E. $60,000.
Answer: B
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