Question

Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information:

	Revenues from Outsiders				Intersegment Transfers				Operating Expenses
Autos	$	4,013,000			$	113,000			$	3,613,000
Trucks		3,513,000				213,000				4,013,000
SUVs		2,613,000				0				2,013,000
Motorcycles		913,000				63,000				1,033,000

The company incurred additional operating expenses (of a general nature) of $1,213,000.

1. What is the profit or loss of each of these segments?

2. Perform the profit or loss test to determine which of these segments is separately reportable.

	Profit	Loss
Autos
Trucks
SUVs
Motorcycles
Total

Required B)

Perform the profit or loss test to determine which of these segments is separately reportable.

Answer 1