ASENSO Company and its divisions are engaged solely in manufacturing. The following data pertain to the industries in which operations were conducted for the current year: Segment Intersegment Sales External Revenue A 1,000,000 5,000,000 B 1,500,000 3,000,000 C 4,000,000 8,000,000 D 2,000,000 2,800,000 E 200,000 900,000 What is the minimum amount of revenue to be considered a major customer? 1,970,000 2,100,000 2,840,000 920,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
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Problem 2E: The following data were summarized from the accounting records for Ruiz Industries Inc. for the year...
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ASENSO Company and its divisions are engaged solely in manufacturing. The following data pertain to the industries in which operations were conducted for the current year:

Segment

Intersegment Sales

External Revenue

A

1,000,000

5,000,000

B

1,500,000

3,000,000

C

4,000,000

8,000,000

D

2,000,000

2,800,000

E

200,000

900,000

What is the minimum amount of revenue to be considered a major customer?

  • 1,970,000
  • 2,100,000
  • 2,840,000
  • 920,000
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