The following information pertains to the Bay Company and its divisions for the year ended December 31, 2020.

Sales to unaffiliated customers P 10,000,000

Inter-segment sales of products similar to those sold to

unaffiliated customers 2,000,000

Bay Company and all of its divisions are engaged solely in manufacturing operations

Required:

1. Is this a reportable segment?
2. If yes, how much is the minimum segment revenue?
3. If no, why?

Please use the proper way or formula in solving so that students can easily understand. This is Intermediate Accounting subject.