Question

Livro Company has three operating segments with the following information: Books Calendars Bags Sales to outsiders $ 8,650 $ 4,360 $ 6,650 Intersegment transfers 665 1,130 1,550 In addition, corporate headquarters generates revenues of $1,000. What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable? (Round your answer to the nearest whole dollar.)

Answer 1

Answer:

minimum amount of revenue that segment of each generate separate is = $2295.5

Explanation:

given data

Bags Sales = $8,650

Bags Sales = $4,360

Bags Sales  = $6,650

Intersegment transfers = 665

Intersegment transfers = 1,130

Intersegment transfers = 1,550

generates revenues = $1,000

solution

we get here total Sales to outsiders that is

total Sales to outsiders = $8,650 + $4,360 +  $6,650

total Sales to outsiders = $19660

and

Intersegment transfers is = 665 + 1,130 + 1500

Intersegment transfer = 3295

so that Combined Segment Revenue is

Combined Segment Revenue = 19660  + 3295

Combined Segment Revenue = 22955

so minimum amount of revenue that segment of each generate separate is 10% Criteria is

= 10 % of 22955

minimum amount of revenue that segment of each generate separate is = $2295.5