The Following Information Pertains to Aria Co

question 65

Multiple Choice

The following information pertains to Aria Co.(Aria) and its operating segments for the year ended December 31,20X6:
Sales to unaffiliated customers $2,000,000
Intersegment sales of products $600,000
Interest earned on loans to other industry segments $40,000
Aria and all its divisions are engaged solely in manufacturing operations.Aria evaluates divisional performance based on controllable contribution by segments.Aria has a reportable segment if that segment's revenue exceeds:

• A) $200,000
• B) $260,000
• C) $204,000
• D) $264,000

---

Definitions:

Financing Charges

The costs associated with borrowing money, including interest, service charges, and any other fees designated by the lender.

List Price

The manufacturer's suggested retail price for a product, before any discounts or allowances.

Small Changes

Minor modifications or adjustments made to processes, products, or behaviors, often with the intention of improving efficiency, quality, or outcomes.

Company Profit

The financial surplus generated by a company after all operating expenses, including production costs, taxes, and overheads, have been deducted from total revenue.