What minimum revenue amount must any one segment generate


Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):

Segments

Red         Blue      Green      Pink      Black       White

Sales to outside parties . . . .  $1,811 $812 $514 $309 $121 $ 99

Intersegment revenues . . . . . . 16 91 109 -0- 16 302

Salary expense . . . . . . . . . . . . 614          379          402 312 317 62

Rent expense . . . . . . . . . . . . . 139 166 81 92 42 31

Interest expense . . . . . . . . . . . 65            59 82 49 14 5

Income tax expense (savings) 141 8761 (86) (64) -0-

Consider the following questions independently. None of the six segments has a primarilyfinancial nature.

a. What minimum revenue amount must any one segment generate to be of significant size torequire disaggregated disclosure?

b. If only Red, Blue, and Green necessitate separate disclosure, is Fairfield disclosing disaggregated data for enough segments?

c. What volume of revenues must a single client generate to necessitate disclosing the existenceof a major customer?

d. If each of these six segments has a profit or loss (in thousands) as follows, which warrantsseparate disclosure?

Red. . . . . . . . .  . $1,074         Pink . . . . . . . . $ (94)

Blue . . . . . . . . . . . 449            Black . . . . . . . . . (222)

Green . . . . . . . . . . 140           White. . . . . . . . . 308

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