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Dukko Company has 3 lines of businesses, each of which is a significant segment. Company sales aggregated to $1,800,000 in 2020, of which Segment 3 contributed 60%. Traceable costs were $600,000 for Segment 3 from a total of $1,200,000 for the company as a whole. In addition, $350,000 of common costs are allocated in the ratio of a segment’s income before common costs to the total income before common costs. For Segment 3, Dukko should report a 2020 segment profit of ______________. A. $200,000 B. $270,000 C. $280,000 D. $480,000

Dukko Company has 3 lines of businesses, each of which is a significant segment. Company sales aggregated to $1,800,000 in 2020, of which Segment 3 contributed 60%. Traceable costs were $600,000 for Segment 3 from a total of $1,200,000 for the company as a whole. In addition, $350,000 of common costs are allocated in the ratio of a segment’s income before common costs to the total income before common costs. For Segment 3, Dukko should report a 2020 segment profit of ______________. A. $200,000 B. $270,000 C. $280,000 D. $480,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 16E
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Dukko Company has 3 lines of businesses, each of which is a significant segment. Company sales
aggregated to $1,800,000 in 2020, of which Segment 3 contributed 60%. Traceable costs were $600,000
for Segment 3 from a total of $1,200,000 for the company as a whole. In addition, $350,000 of common
costs are allocated in the ratio of a segment’s income before common costs to the total income before
common costs. For Segment 3, Dukko should report a 2020 segment profit of ______________.
A. $200,000
B. $270,000
C. $280,000
D. $480,000

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