Elektronix, Inc. has three operating segments with the following information: What is the minimum amount of operating profit or loss an operating segment must have to be considered a reportable segment?
A) $124,000.
B) $127,600.
C) $100,000.
D) $130,000.
E) $140,000.

Question

Elektronix, Inc. has three operating segments with the following information:  What is the minimum amount of operating profit or loss an operating segment must have to be considered a reportable segment?
A) $124,000. 
B) $127,600. 
C) $100,000. 
D) $130,000. 
E) $140,000.

Quizplus · Accepted Answer

DVDs $1,000,000 + MP3s $400,000 = Total Profitable Segments $1,400,000 × 10% = $140,000 Threshold for Segment Profit/Loss Reporting