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 $1,216,000 $352,000 $387,000 $477,000
Variable operating expenses 683,600 193,600 215,000 275,000
Controllable fixed expenses 267,000 84,000 94,000 89,000
Noncontrollable fixed expenses 117,000 34,000 39,000 44,000

In addition, the company incurred common fixed costs of $23,700. Assuming use of a responsibility accounting system. What amounts should be used to evaluate the performance of the Los Angeles division manager?

                     Los Angeles Division

Particulars                                               Amount

Revenue                                                 $352,000

Less: Variable operating expenses      $193,600

Less: Controllable fixed expenses        $84,000

Controllable profit margin                    $74,400

Non-controllable and common fixed cost is not related to a particular division, therefore, will not br considered while evaluating the performance of a division manager.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.