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Chambers Company has seven operating segments but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole,
Chambers Company has seven operating segments but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $1,010,000 ($780,000 + $230,000) from sales to outside customers. In addition, the segments had $300,000 in intersegment sales ($250,000 + $50,000).
Outside Sales | Intersegment Sales | ||||||||||
One | $ | 270,000 | $ | 110,000 | |||||||
Two | 200,000 | 70,000 | |||||||||
Three | 160,000 | 40,000 | |||||||||
Four | 150,000 | 30,000 | |||||||||
Totals | $ | 780,000 | $ | 250,000 | |||||||
Five | $ | 100,000 | $ | 20,000 | |||||||
Six | 80,000 | 10,000 | |||||||||
Seven | 50,000 | 20,000 | |||||||||
Totals | $ | 230,000 | $ | 50,000 | |||||||
Which of the following statements is true?
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