Answer:
$20 million
Explanation:
The computation of the ending inventory if FIFO is used
= LIFO reserve + Ending inventory based on LIFO inventory
= $3 million + $17 million
= $20 million
We simply added the LIFO reserve and LIFO ending inventory so that FIFO ending inventory can be computed. Hence, we take all the items for the computation part.
Answer:
Find attached complete question:
Option A 1452 units
Explanation:
The increase in labor cost=$3.39-$2.89=$0.50
Half of the increase would reflect as increase in price i.e$0.25
Current price is $16
new price is $16+$0.25=$16.25
contribution margin =selling price -variable cost
currently units sold=$30,875/$16= 1,930
Current contribution per unit=$11,401/1930=$5.91
new contribution per unit would reduce by $0.25 i.e $5.91-$0.25=$5.66
breakeven in units=period cost/contribution margin per unit
period cost is $8346
breakeven units=$8346/$5.66=1475 units
The closest option is A 1452 units,the difference could be due to rounding error
Sell the asset, which will drive down the price and cause the expected return to reach the level of the required return.