Rainbow Company has internally organized itself into the following seven segments:

Segments 3 and 4 have similar products, use similar processes, and distribute their products through similar channels.
Rainbow Company is concerned about reporting segment information for each segment.
According to SFAS No. 131, which of the segments should be separatelyreported?

Transcribed Image Text:

Total Operating Profit Total Assets Revenues Segment I Segment 2 Segment 3 Segment 4 Segment 5 Segment 6 Segment 7 Total $150 $1,000 600 500 700 200 100 80 30 200 300 110 100 $3,180 $405 $2,210