Cream Company operates in three different industries, each of which is appropriately regarded as a reportable segment. Segment No. 1 contributed 60% of Cream Company's total sales. Sales for Segment No. 1 were $450,000 and traceable costs were $200,000. Total common costs for Cream were $300,000. Cream allocates common costs on the basis of the ratio of a segment's sales to total sales, an appropriate method of allocation. What should be the operating profit presented for Segment No. 1 for the year?

a. $270,000.

b. $70,000.

c. $180,000.

d. $250,000.

3. The profitability information that should be reported for each reportable segment of a business enterprise consists of

a. An operating profit or loss figure consisting of segment revenues less traceable costs but not allocated common costs.

b. An operating profit or loss figure consisting of segment revenues less allocated common costs but not traceable costs.

c. An operating profit or loss figure consisting of segment revenues less traceable costs and allocated common costs.

d. Segment revenues only.

4. In financial reporting for segments of a business enterprise, the operating profit or loss of a segment should include

a. Revenue from other segments.

b. Federal income taxes.

c. Interest expense even though the segment's operations are not principally of a financial nature.

d. Any of the above, if it is included in the measures reviewed by the chief operating decision maker.