Cream Company operates in three different industries, each of which is appropriately regarded as a reportable segment. Segment No. 1 contributed 60% of Cream Company’s total sales. Sales for Segment...

Cream Company operates in three different industries, each of which is appropriately regarded as a reportable segment. Segment No. 1 contributed 60% of Cream Company’s total sales. Sales for Segment No. 1 were $450,000 and traceable costs were $200,000. Total common costs for Cream were $300,000. Cream allocates common costs on the basis of the ratio of a segment’s sales to total sales, an appropriate method of allocation. What should be the operating profit presented for Segment No. 1 for the year?

a. $270,000.

b. $70,000.

c. $180,000.

d. $250,000.