Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation:

Carolina Company

Income Statement

For the year ended December 31

Sales 60,000

Cost of Goods sold 23,000

Gross Profit 37,000

Expenses 13,000

Income before taxes $ 24,000

Carolina's ending inventory using the LIFO method was $8,700. Carolina's accountant determined that had the company used FIFO, the ending inventory would have been $9,100.

a. Determine what the income before taxes would have been, had Carolina used the FIFO method of inventory valuation instead of LIFO.

b. What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate?

c. If Carolina wanted to lower the amount of income taxes to be paid, which method would it choose?

What are two benefits of consumer programs

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?