X There must be enough segments reported so that at least $75\%$ of unaffiliated revenues is shown by reportable segments

$(75\%$ test$).$ Sales to external customers total $$30,000,000$ so external revenues reported by operating segments must be at

least $$22,500,000($$$30,000,00075\%).$

Grum Corp., a publicly owned corporation, is subject to the requirements for segment reporting. In its income statement for the year

ended December $31,$ year $1,$ Grum reported revenues of $$50,000,000,$ operating expenses of $$47,000,000,$ and net income of

$$3,000,000.$ Operating expenses include payroll costs of $$15,000,000.$ Grum's combined identifiable assets of all industry segments at

December $31,$ year $1,$ were $$40,000,000.$ Reported revenues include $$30,000,000$ of sales to external customers. External revenue

reported by operating segments must be at least