Fireside Corporation is organized into four segments. The internal reporting system generated the following segment information:
Revenues from outsiders Intersegment Transfers Operating Expenses
Cards 1,200,000 100,000 900,000
Calendars 900,000 200,000 1,350,000
Clothing 1,000,000 0 700,000
Books 800,000 50,000 770,000
The company incurred additional operating expenses (of a general nature) of $700,000.
What is the profit or loss of each of these segments? Perform the profit or loss test to determine which of these segments is separately reportable.
Computation in Excel plus comments about how the tests work are provided.