The Following Information on Sales Is Available for the Company's

question 18

Multiple Choice

The following information on sales is available for the company's three operating segments: $$\begin{array} { | c | r | r | r | } \hline \text { Segment } & \text { International Sales } & \text { External Sales } & \text { Total Sales } \\\hline \mathrm { A } & \$ 60,000 & \$ 300,000 & \$ 360,000 \\\hline \mathrm { B } & 200,000 & 10,000 & 210,000 \\\hline \mathrm { C } & & \underline { 1,500,000 } & \underline { 1,500,000 } \\\hline & \$ 260,000 & \$ 1,810,000 & \$ 2,070,000 \\\hline\end{array}$$ Which of the operating segments must be reported separately?

• A)Only Segment C
• B)Only Segments B and C
• C)Only Segments A and C
• D)Segments A, B, and C

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Definitions:

Consumption

The act of using goods and services to satisfy needs and desires, often considered a primary component of an economy's activity.

Disposable Income

The funds left for households to manage spending and saving after income tax calculations.

Consumption

The part of personal income that is spent on goods and services rather than saved, influencing economic activity and demand.

Savings

The portion of income not spent on current expenditures or taxes, which is set aside for future use or investment.