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

Question

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The Answer of 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