Tanner Company Identified Three Operating Segments by Analyzing Its Types

Multiple Choice

Tanner Company identified three operating segments by analyzing its types of products produced.Information related to those segments for 2010 is presented below: $\begin{array}{lrr}&\text { Revenues } & \text { Expenses } & \text { Common Expenses }\\\hline\text { Segment A } & \$ 400,000 & \$ 300,000 \\\text { Segment B } & 250,000 & 100,000 \\\text { Segment C } & 350,000 & 200,000 \\\text { Total }&\$1,000,000&\$600,000&\$200,000\end{array}$ For measurement purposes, Tanner typically allocates common expenses to segments based on the ratio of a segment's profit before common expenses to total profit before common expenses.As this allocation method reasonably allocates common expenses to segments, Segment A's operating profit for segment reporting purposes would be

A) $ 0
B) $ 50, 000
C) $ 75, 000
D) $100, 000