The Following Information Pertains to Nixon Corp Nixon and All of Its Divisions Are Engaged Solely in for the Year

question 107

Multiple Choice

The following information pertains to Nixon Corp. and its divisions for the year ended December 31, 2015. $\begin{array}{l}\text { Sales to unaffiliated customers }&\$3,000,000\\\text { Intersegment sales of products similar to those sold to }\\\text { unaffiliated customers } &900,000\\\text { Interest earned on loans to other operating segments } &60,000\end{array}$ Nixon and all of its divisions are engaged solely in manufacturing operations. Nixon has a reportable segment if that segment's revenue exceeds

• A) $396,000.
• B) $390,000.
• C) $306,000.
• D) $300,000.

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Definitions:

Variable Input

An input whose quantity the firm can vary at any time (for example, labor).

Long-Run Equilibrium

A state where all factors of production are variable, leading to the optimal distribution of resources in the market.

Demand Curve

A chart that illustrates the link between a product's cost and the amount of the product consumers want to buy at those prices.

Cherry Industry

A sector of agriculture that focuses on the cultivation, harvest, and distribution of cherries.