Chicken Company has three lines of business, each of which was determined to be reportable segment. Chicken Company sales aggregated P15,000,000 in 2020 of which Segment Wings contributed 40%. Traceable costs were P3,500,000 for Segment Wings of a total of P10,000,000 for the company as a whole. For internal reporting, Chicken allocates common costs of P3,000,000 based on the ratio of a segment’s income before common costs. In its 2020 financial statements, how much should Chicken report as operating profit for Segment Wings?

Chicken Company has three lines of business, each of which was determined to be reportable segment. Chicken Company sales aggregated P15,000,000 in 2020 of which Segment Wings contributed 40%. Traceable costs were P3,500,000 for Segment Wings of a total of P10,000,000 for the company as a whole. For internal reporting, Chicken allocates common costs of P3,000,000 based on the ratio of a segment’s income before common costs. In its 2020 financial statements, how much should Chicken report as operating profit for Segment Wings?

Name: 8. Chicken Company has three lines of business, each of which was dete
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Description: 8. Chicken Company has three lines of business, each of which was determined to be reportable segment. Chicken Company sales aggregated P15,000,000 in 2020 of which Segment Wings contributed 40%. Traceable costs were P3,500,000 for Segment Wings of a

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 2EA: Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019,...

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