Answered

The Nigel Co. had four separate operating segments:What amount of revenues must be generated from one customer before that party must be identified as a major customer

Answer :

abiolataiwo2015

The amount of revenues must be generated from one customer before that party must be identified as a major customer is: $53,180.

Revenue generated

Any revenues generated from a single customer have to be disclosed if the amount is either 10% or more of consolidated sales.

Hence:

Using this formula

Consolidated revenue= Total sales to outsider for 4 separate operating segments×10%

Let plug in the formula

Consolidated revenue=($173,600+$115,300+$134,000+$108,900)×10%

Consolidated revenue=$531,800×10%

Consolidated revenue= $53,180 minimum

Inconclusion the amount of revenues must be generated from one customer before that party must be identified as a major customer is: $53,180.

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