The Fratilo Co In Addition, Revenues Generated at Corporate Headquarters Are $1,400

question 113

Multiple Choice

The Fratilo Co. had three operating segments with the following information: $$\begin{array} { | l | r | r | c | } \hline & \text { Pens } & \underline { \text { Pencils } } & \underline { \text { Erasers } } \\\hline \text { Sales to outsiders } & \$ 11,200 & \$ 5,600 & \$ 8,400 \\\hline \text { Intersegment revenues } & 840 & 1,400 & 1,960 \\\hline\end{array}$$ In addition, revenues generated at corporate headquarters are $1,400.
-The Rivers Co. had four separate operating segments:
What amount of revenues must be generated from one customer before that party must be identified as a major customer?

• A) $57,680.
• B) $64,960.
• C) $52,640.
• D) $78,960.
• E) $63,560.

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Definitions:

Low-Income Families

Households that earn significantly less income than the average for their location or society, often qualifying them for certain types of financial aid.

Efficient Allocation

The optimal distribution of resources among competing uses, allowing for the best possible achievement of goals with minimal wasted effort or expense.

Resource Allocation

The process of assigning and managing assets in a manner that effectively supports an organization's strategic goals.

Factor Markets

Marketplaces where services of the factors of production (like labor, capital, and land) are bought and sold.