Lloyd Corporation Reports the Following Information for 2008 for Its

question 44

Essay

Lloyd Corporation reports the following information for 2008 for its three operating segments:
Indirect operating expenses are allocated to segments based upon the ratio of each segment's traceable operating expenses to total traceable operating expenses.Interest expense is allocated to segments based upon the ratio of each segment's sales to total sales.
Required:
a)Calculate the operating profit or loss for each of the segments for 2008.
b)Determine which segments are reportable,applying the operating profit or loss test.

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Definitions:

Export Capabilities

refers to a company's ability to sell its goods or services outside its own country, involving knowledge of international markets and logistics.

U.S. Businesses

Companies or commercial organizations based in the United States.

STP Analysis

A marketing process involving Segmentation, Targeting, and Positioning to identify and reach specific customer groups effectively.

Target Markets

Specific groups of consumers a company aims to reach with its products, services, and marketing efforts based on various demographic, geographic, and psychographic characteristics.