A company has five business units that may be reportable as business segments. Data for these entities is as follows: A ($000) B C D E Sales $621 $853 $1,237 $2,832 $4,720 Profit 103 (218) 832 1.337...

Solution
    ACT470-Module 6-Option 1
        Segment Test:                        Quantitative Thresholds
        ($1,000s)    A    B    C    D    E        Profit    Loss
        Sales    $621    $853    $1,237    $2,832    $4,720    $10,263    10% of Total sales
        Profit    103    -218    832    1.337    -583    $936    10% of Total profit    10% of Total Loss
        Assets    1,200    2,780    2,324    4,280    8,321    $18,905    10% of Total Assets
        Sales % of total sales    6%    8%    12%    28%    46%
        Profit % of total Profit    11%        89%    0.14%
        Assets % of total Assets    6%    15%    12%    23%    44%
        1. Hence reportable segment as per revenue is C, D, F
        Since total reporting segment exceed 75% of total revenue hence no more reportable segement required.
        2. Reprrtable segment from the point of view of profit is segment A and C, simce it is more than 75% of total reportable profit no more reportable segment required.
        3. From the assets point of view reportable segment is...