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

Restin, Los Angeles Bay Area Central Valley
Inc. Division Division Division
Revenues $1,168,000 $336,000 $371,000 $461,000
Variable operating expenses 654,800 184,800 205,000 265,000
Controllable fixed expenses 261,000 82,000 92,000 87,000
Noncontrollable fixed expenses 111,000 32,000 37,000 42,000

In addition, the company incurred common fixed costs of $23,100. Bay Area's segment profit margin is ________.

Respuesta :

Answer:

Bay area segment profit is $29,663

Explanation:

                    Restin       Los Angeles      Bay Area    Central valley

Revenue       1168000      336000           371000         461000

Variable          654800     184800            205000        265000

Controllable    261000      82000             92000          87000

N controllable  111000       32000             37000          42000

Fixed                23100         6645                 7337             9118

Profit               118100         30555               29663          57882

Fixed cost is apportioned to each segment using the percentage revenue generated