Ayen Company has three manufacturing divisions, each of which has been determined to be reportable segment. Common cost are appropriately allocated on the basis of each division's sales in relation to Ayen's aggregate sales. In 2015, Division 1 had sales of 10,000,000 which was 20% of Ayen's total sales, and had traceable operating costs of 6,000,000. In 2009, Ayen incurred operating costs of 1,500,000 that were not directly traceable to any divisions. In addition, Ayen incurred interest expense of 500,000 in 2015. In reporting segment information, what amount should be shown as operating profit Division 1 for 2009?

Answer rating: 100% (QA)

SOLUTION To calculate the operating profit of Division 1 for 2015 we need to subtract its traceable ... View the full answer