Romanoff Industries Had the Following Inventory Transactions Occur During 2015

question 62

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 FIFO? (rounded to whole dollars)

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

---

Definitions:

Benchmark Portfolio

Portfolio against which a manager is to be evaluated.

Well-Diversified

Refers to an investment portfolio that contains a wide variety of assets to minimize risk.

SML

The Security Market Line, a graphical representation of the expected return of investments as a function of their risk, as described by the Capital Asset Pricing Model.

Equally-Weighted Portfolio

An investment strategy where each asset in a portfolio is allocated the same percentage of total investment capital.