Kimber Company operates in four different industries, each of which is appropriately regarded as a reportable segment.

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Kimber Company operates in four different industries, each of which is appropriately regarded as a reportable segment. Total sales for 20X2 for all segments combined were $1,000,000. Sales for Segment 2 were $400,000, and the traceable costs were $150,000. Total common costs for all segments combined were

$500,000. Kimber allocates common costs based on the ratio of a segment’s sales to total sales, an appropriate method of allocation. The segment profit to be reported for Segment 2 for 20X2 is

a. $50,000.

b. $125,000.

c. $200,000.

d. $250,000.

e. None of the above.

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