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10 January, 18:31

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.)

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  1. 10 January, 21:36
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    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
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