Dragon Company Has Two Reportable Segments,A and B

question 5

Multiple Choice

Dragon Company has two reportable segments,A and B.Segment A made $3,000,000 of sales to external customers and $200,000 of sales to other operating segments.Segment B made sales of $5,000,000 to external customers and $1,200,000 of sales to other operating segments.Dragon Company reported $9,600,000 of revenues on its consolidated income statement.What calculation below correctly determines whether Dragon Company's reportable segments satisfy the 75% revenue test?

• A)$8,000,000/$9,600,000
• B)$8,000,000/$11,000,000
• C)$9,400,000/$9,600,000
• D)$9,400,000/$11,000,000