Question
Company discloses supplemental operating segment information. The following information is available for the current year: segment Sales Traceable expenses X 5,000,000 3,000,000 Y 4,000,000 2,500,000
Company discloses supplemental operating segment information. The following information is available for the current year:
segment | Sales | Traceable expenses |
X | 5,000,000 | 3,000,000 |
Y | 4,000,000 | 2,500,000 |
z | 3,000,000 | 1,500,000 |
| 12,000,000 | 7,000,000 |
Addl: expenses as follows:
Indirect expenses | 1,800,000 |
General Corporate Expenses | 1,200,000 |
Interest expense | 600,000 |
Income tax expense | 400,000 |
The interest expense and income tax expense are regularly review by the chief operating decision marker as a measure of profit or loss.
Appropriate common expenses are allocated to segments based on the ratio of a segments sales to total sales.
5. What is segment Zs profit for the current year?
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