Vehicle Corporation is organized into four operating segments. The internal repo

Question

Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information: Revenues from Intersegment Operat ing Outsiders 4,000,000 3,500,00e 2,600,008 Transfers $ 100,00ee 200,000 Expenses Autos Trucks SUVs Motorcycles 4,000,000 2,800,000 1,020,00e 900,000 e,000 The company incurred additional operating expenses (of a general nature) of $1,200,000 a. What is the profit or loss of each of these segments? b. Perform the profit or loss test to determine which of these segments is separately reportable Complete this question by entering your answers in the tabs below Required A Required B What is the profit or loss of each of these segments?

Explanation / Answer

Answer a. Segmented Income Statement Autos Trucks SUVs Motorcycles Revenue from Outsiders      4,000,000.00      3,500,000.00      2,600,000.00         900,000.00 Intersegmnet Transfers         100,000.00         200,000.00                           -              50,000.00 Total Revenue      4,100,000.00      3,700,000.00      2,600,000.00         950,000.00 Less: Operating Expenses (3,600,000.00) (4,000,000.00) (2,000,000.00) (1,020,000.00) Segmented Profit (Loss)         500,000.00       (300,000.00)         600,000.00         (70,000.00) Answer b. Profit & Loss test Profit (Loss) Percentage Autos         500,000.00 68.49% Trucks       (300,000.00) -41.10% SUVs         600,000.00 82.19% Motorcycles         (70,000.00) -9.59% Total         730,000.00 100.00% Autos & SUV's should be separately reported.

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