If Leisure Group allocates its common costs to the bar and restaurant, what would be the reported profit of each segment? a. Bar = $6,000 profit; Restaurant = $50,000 profitb. Bar = $6,000 loss; Restaurant = $50,000 profitc. Bar = breakeven; Restaurant = $50,000 profitd. Bar = $14,000 profit; Restaurant = $230,000 profit Assume that Leisure Group prepared its segmented income statement as shown.Income StatementLeisure GroupBarGroup$800,000RestaurantSales$100,000$700,000Variable Costs310,00060,000250,000см490,00040,000450,000Traceable FC246,00026,000220,000Segment Margin244,00014,000230,000Common Costs200,000Profit44,000

solution concept while calculating the reportable profit of each segment the following shall be…

f Leisure Group allocates its common costs to the bar and restaurant, what would be the reported profit of each segment? a. Bar = $6,000 profit; Restaurant = $50,000 profit b. Bar = $6,000 loss; Restaurant = $50,000 profit c. Bar = breakeven; Restaurant = $50,000 profit d. Bar = $14,000 profit; Restaurant = $230,000 profit

f Leisure Group allocates its common costs to the bar and restaurant, what would be the reported profit of each segment? a. Bar = $6,000 profit; Restaurant = $50,000 profit b. Bar = $6,000 loss; Restaurant = $50,000 profit c. Bar = breakeven; Restaurant = $50,000 profit d. Bar = $14,000 profit; Restaurant = $230,000 profit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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