Romanoff Industries Had the Following Inventory Transactions Occur During 2015

question 93

Multiple Choice

Romanoff Industries had the following inventory transactions occur during 2015: The company sold 150 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO? (rounded to whole dollars)

• A)$3,318
• B)$3,552
• C)$6,948
• D)$7,182

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Definitions:

Economic Profit

The remaining amount after all explicit and implicit costs are deducted from the entire revenue.

Technological Breakthrough

A significant innovation or discovery that dramatically advances technology or improves processes and products.

Profit-Maximizing Monopolist

A monopolist entity that aims to maximize its profits by setting prices where marginal costs equal marginal revenues, given its unique market power.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like willingness to pay, location, or purchase volume.