Company discloses supplemental operating segment information. The following information is available for the current year: segment Sales Traceable expenses X 5,000,000 3,000,000 Y 4,000,000 2,500,000 z 3,000,000 1,500,000 12,000,000 7,000,000 Addl: expenses as follows: Indirect expenses 1,800,000 General Corporate Expenses 1,200,000 Interest expense 600,000 Income tax expense 400,000 The interest expense and income tax expense are regularly review by the chief operating decision marker as a measure of profit or loss. Appropriate common expenses are allocated to segments based on the ratio of a segment’s sales to total sales. 5. What is segment Z’s profit for the current year?
Company discloses supplemental operating segment information. The following information is available for the current year: segment Sales Traceable expenses X 5,000,000 3,000,000 Y 4,000,000 2,500,000 z 3,000,000 1,500,000 12,000,000 7,000,000 Addl: expenses as follows: Indirect expenses 1,800,000 General Corporate Expenses 1,200,000 Interest expense 600,000 Income tax expense 400,000 The interest expense and income tax expense are regularly review by the chief operating decision marker as a measure of profit or loss. Appropriate common expenses are allocated to segments based on the ratio of a segment’s sales to total sales. 5. What is segment Z’s profit for the current year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Company discloses supplemental operating segment information. The following information is available for the current year:
segment
Sales
Traceable expenses
X
5,000,000
3,000,000
Y
4,000,000
2,500,000
z
3,000,000
1,500,000
12,000,000
7,000,000
Addl: expenses as follows:
Indirect expenses
1,800,000
General Corporate Expenses
1,200,000
Interest expense
600,000
Income tax expense
400,000
The interest expense and income tax expense are regularly review by the chief operating decision marker as a measure of profit or loss.
Appropriate common expenses are allocated to segments based on the ratio of a segment’s sales to total sales.
5. What is segment Z’s profit for the current year?
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