Note: This is a Kaplan CPA Review Question
Tecumseh Co. (Tecumseh) , a publicly owned corporation, assesses performance and makes operating decisions using the following information for its reportable segments:
Total revenues $768,000
Total profit and loss $40,600
Included in the total profit and loss are intersegment profits of $6,100. In addition, Tecumseh has $500 of common costs for its reportable segments that are not allocated in reports used internally. For purposes of segment reporting, Tecumseh should report total combined segment profit of:
A) $35,000
B) $34,500
C) $40,600
D) $46,700
E)
$41,100
Correct Answer:
Verified
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