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Estilo Company has three operating segments with the following information:

Paper Pencils Hats

Sales to outsiders.............$8,000 $4,000 $6,000

Intersegment transfers......... 600 1,000 1,400

In addition, corporate headquarters generates revenues of $1,000.

What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable?

a) $1,800

b) $1,900

c) $2,000

d) $2,100

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9445327

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