<span>C: Businesses Management and Administration</span>
FIFO reports higher gross profit and net income than the LIFO method when (a)prices are increasing
Explanation:
<u>FIFO (First in, First Out) reports higher gross profit and net income than the LIFO (Last In, First Out) method when prices are increasing. </u>
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The FIFO method refers to an inventory system wherein the first items purchased are thought to be sold first(i.e. First In First Out) while the most recent purchases make up the ending inventory.
On the other hand, the LIFO method is just the opposite. The recent purchase are sold first and the first item purchased makes up the ending inventory(last item that is in is sold first)
Answer:
$50,000 + $25x
Explanation:
Given that,
Fixed cost to start a production process = $50,000
Variable cost per unit = $25
Revenue per unit is projected to be $45
Therefore,
Let the number of units produced be x,
The total cost function is as follows:
Total cost = Fixed cost + Variable cost
= $50,000 + (Variable cost per unit × Number of units)
= $50,000 + $25x
I think that the answer would be 30% of the fixed costs for $60,300 plus $3800=64,100 ie including the loss which would be saved if the mountain bike business was eliminated. The $3800 represents the operating loss for the mountain bike business.
