Answer:
Explanation:
Operating Segment
Hotels Grains Candy Totals
Revenues (1) $378,000 $450,000 $72,000 $900,000
Expenses—
Cost of goods sold (1) 192,000 196,000 12,000 400,000
Operating and admin. expense (2) 58,000 91,000 27,000 176,000
Depreciation expense (3) 14,900 12,800 2,300 30,000
Total expenses 264,900 299,800 41,300 606,000
Operating profit $113,100 $150,200 $30,700 $ 294,000
(1) Total times segment percentage.
(2) Hotels = ($200,000 × 35%) - $12,000 = $58,000
Grains = ($200,000 × 50%) - $9,000 = $91,000
Candy = ($200,000 × 15%) - $3,000 = $27,000
(3) Hotels = ($40,000 × 46%) - $3,500 = $14,900
Grains = ($40,000 × 42%) - $4,000 = $12,800
Candy = ($40,000 × 12%) - $2,500 = $2,300
