King Company operates in 4 different industries, each of which is appropriately regarded as a reportable segment. Total sales for 2019 for all segments combined were $1,000,000. Sales for Segment 2 were $400,000, and the traceable costs were $150,000. Total common costs for all segments combined were $500,000. King allocates common costs based on the ratio of a segment’s sales to total sales, an appropriate method of allocation. The segment profit to be reported for Segment 2 for 2019 is _________. A. $ 50,000 B. $125,000 C. $200,000 D. $250,000

King Company operates in 4 different industries, each of which is appropriately regarded as a reportable segment. Total sales for 2019 for all segments combined were $1,000,000. Sales for Segment 2 were $400,000, and the traceable costs were $150,000. Total common costs for all segments combined were $500,000. King allocates common costs based on the ratio of a segment’s sales to total sales, an appropriate method of allocation. The segment profit to be reported for Segment 2 for 2019 is _________. A. $ 50,000 B. $125,000 C. $200,000 D. $250,000

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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