Answer:
Operating profit of segment B = $180,000
Explanation:
The allowable cost to any of the segment would be equal to the proportion that the segment income bears to the overall total income multiplied by the allocable cost.
Mathematically, we can use the realationship below:
Allocable cost to Segment B = Sales of segment B/Total sales × Alllocable cost
Allowable cost = 180,000
Total sales = 250,000+ 120,000 + 90,000 = 460,000
Allocable cost to B = (120,000/460,000) × 180,000 = 46,956.52
Allocable cost to segment B =$46,956.52
However,the question required us to determine operation profit.
Operating profit is the excess of sales revenue over operating expenses
Operating profit of segment B-= 200,000 - 90,000 = 180,000
Operating profit of segment B = $180,000
