Crisfield Company Has Two Reportable Segments,C and D Segment C

question 48

Multiple Choice

Crisfield Company has two reportable segments,C and D Segment C made $4,000,000 of sales to external customers and $400,000 of sales to other operating segments. Segment D, on the other hand, made sales of $8,000,000 to external customers and $1,600,000 of sales to other operating segments. Crisfield Company reported $13,200,000 of revenues on its consolidated income statement. What calculation below correctly determines whether Crisfield Company's reportable segments satisfy the 75% revenue test?

• A) $14,000,000/$15,200,000
• B) $14,000,000/$13,200,000
• C) $12,000,000/$13,200,000
• D) $12,000,000/$15,200,000

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