Dutko Company has three lines of business, each of which is a significant industry segment. Company sales
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Dutko Company has three lines of business, each of which is a significant industry segment. Company sales aggregated $1,800,000 in 20X6, of which Segment 3 contributed 60 percent. Traceable costs were $600,000 for Segment 3 from a total of $1,200,000 for the company as a whole. In addition, $350,000 of common costs are allocated in the ratio of a segment’s income before common costs to the total income before common costs. For Segment 3, Dutko should report a 20X6 segment profit of
a. $200,000.
b. $270,000.
c. $280,000.
d. $480,000.
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Related Book For
Advanced Financial Accounting
ISBN: 9781260165111
12th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd
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