Reference no: EM132943729

ABC Corporation has the following information

                                                                           Segment A              Segment B             Segment C         Segment D        Segment E

Sale from outside customers                     500,000.00             250,000.00             240,000.00          200,000.00      150,000.00
Sales from internal customers                    200,000.00           100,000.00               600,000.00           10,000.00        60,000.00
Segment gross profit from outside customers  0.60                    .55                        .60                         .70                .70

• Additional informationGross profit from internal customers is 10% lower as compared to outside customer
• The reportable segments identified based on revenue threshold are similar to that of under both the assets and profit/loss thresholds.
• All segments have similar characteristics except Segment E

Problem 1: How much is the gross profit in the entity's income statement?

Option 1: 826,500.00
Option 2: 721,500.00
Option 3: 581,500.00
Option 4: 1,281,700.00
Option 5: None of the choices

Problem 2: How much is the total revenue from reportable segments?

Option 1: 2,100.00
Option 2: 1,890,000.00
Option 3: 390,000.00
Option 4: 1,190,000.00
Option 5: None of the choices