Pale Company Has Four Manufacturing Divisions, Each of Which Has

Multiple Choice

Pale Company has four manufacturing divisions, each of which has been determined to be a reportable segment.Common operating costs are appropriately allocated on the basis of each division's sales in relation to Pale's aggregate sales.Pale's Delta division accounted for 40% of Pale's total sales in 2014.For the year ended December 31, 2014, Delta had sales of $5,000,000 and traceable costs of $3,600,000.In 2014, Pale incurred operating costs of $350,000 that were not directly traceable to any of the divisions.In addition, Pale incurred interest expense of $360,000 in 2014.In reporting supplementary segment information, how much should be shown as Delta's operating profit for 2014?

A) $1,400,000
B) $1,256,000
C) $1,260,000
D) $1,116,000