Last Year, Rochester Corporation's Variable Costing Net Operating Income Was

question 170

Essay

Last year, Rochester Corporation's variable costing net operating income was $78,000. The fixed manufacturing overhead costs released from inventory under absorption costing amounted to $39,000.
Required:
Determine the absorption costing net operating income last year. Show your work!

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Definitions:

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted by its total market value.

Sharpe Measure

A method used to evaluate the risk-adjusted return of an investment, comparing the excess return (over a risk-free rate) to the standard deviation of returns.

S&P 500 Index

A stock market index in the United States composed of the market values of 500 major companies listed on either the New York Stock Exchange or NASDAQ.

Time-Weighted Return

A method of calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing solely on the performance of the investments themselves.