King Company operates in 4 different industries, each of which is appropriately regarded as a reportable segment. Total sales for 2019 for all segments combined were $1,000,000. Sales for Segment 2 were $400,000, and the traceable costs were $150,000. Total common costs for all segments combined were $500,000. King allocates common costs based on the ratio of a segment’s sales to total sales, an appropriate method of allocation. The segment profit to be reported for Segment 2 for 2019 is _________. A. $ 50,000 B. $125,000 C. $200,000 D. $250,000

King Company operates in 4 different industries, each of which is appropriately regarded as a reportable segment. Total sales for 2019 for all segments combined were $1,000,000. Sales for Segment 2 were $400,000, and the traceable costs were $150,000. Total common costs for all segments combined were $500,000. King allocates common costs based on the ratio of a segment’s sales to total sales, an appropriate method of allocation. The segment profit to be reported for Segment 2 for 2019 is _________. A. $ 50,000 B. $125,000 C. $200,000 D. $250,000

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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