Ridge Company Is in the Process of Determining Its Reportable

question 21

Essay

Ridge Company is in the process of determining its reportable segments for the year ended December 31,20X8.As the person responsible for determining this information,you gather the following information:
Required:
a)Using the appropriate tests,determine which of the industry segments listed above are reportable for 20X8.Show your supporting computations in good form.
b)Indicate whether or not Ridge's reportable segments satisfy the 75 percent test.Show your supporting computations in good form.

Problem 72 (continued):

Understand the role of economic profit in monopolistic competition.

Comprehend the significance of demand and cost schedules in determining firm's market strategies.

Understand the use of concentration ratios and the Herfindahl index to measure market concentration.

Understand the basic assumptions and characteristics of monopolistic competition.

---

Definitions:

Reciprocity Norm

A social norm that expects individuals to help those who have helped them, ensuring mutual aid and cooperation in human societies.

Free Samples

Items given without charge to potential customers to try the product before making a purchase.

Obligated

The state of being legally or morally bound to do something or to follow through on a commitment.

Conciliatory Acts

Behaviors intended to overcome the distrust or hostility of another party, aiming at peace and resolution of conflict.