Leno Corporation operates in three different industries each of which is appropriately regarded as a reportable segment. Segment B contributed 30% of Leno Corporation's total sales. Sales for Segment B were $350,000 and traceable costs were $200,000. Total common costs for all segments were $500,000. Leno allocates common costs based on the ratio of each segment's sales to total sales. What should be the operating profit (loss) for Segment B? a. $150,000 b. $10,000 c. $-0- d. ($100,000)

Leno Corporation operates in three different industries each of which is appropriately regarded as a reportable segment. Segment B contributed 30% of Leno Corporation's total sales. Sales for Segment B were $350,000 and traceable costs were $200,000. Total common costs for all segments were $500,000. Leno allocates common costs based on the ratio of each segment's sales to total sales. What should be the operating profit (loss) for Segment B? a. $150,000 b. $10,000 c. $-0- d. ($100,000)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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