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a) Based on the information provided, calculate the operating income in good format. Show all calculations. b) Calculate the individual and net Growth Component.  c) Calculate the individual and net Price Recovery. d) Calculate the Productivity Component e) Show the reconciliation of the Operating Incom

a) Based on the information provided, calculate the operating income in good format. Show all calculations. b) Calculate the individual and net Growth Component.  c) Calculate the individual and net Price Recovery. d) Calculate the Productivity Component e) Show the reconciliation of the Operating Incom

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a) Based on the information provided, calculate the operating income in good format. Show all calculations.

b) Calculate the individual and net Growth Component. 

c) Calculate the individual and net Price Recovery.

d) Calculate the Productivity Component

e) Show the reconciliation of the Operating Income

Rhino manufacturing Company (RMC) is an industry leader that employs a skilled work force and high-end manufacturing equipment to convert raw materials into finished- goods used in both residential and commercial building construction. The following data pertains to RMC's 2022 and 2023 fiscal years. Purchased raw materials (units) Sold finished goods (units) Selling price of finished goods (per unit) Purchase price of raw materials (per unit) Fixed overhead 2022 35,000 29,600 $23.00 $18.00 $100,000 2023 45,000 39,700 $21.80 $16.80 $100,000
Transcribed Image Text:Rhino manufacturing Company (RMC) is an industry leader that employs a skilled work force and high-end manufacturing equipment to convert raw materials into finished- goods used in both residential and commercial building construction. The following data pertains to RMC's 2022 and 2023 fiscal years. Purchased raw materials (units) Sold finished goods (units) Selling price of finished goods (per unit) Purchase price of raw materials (per unit) Fixed overhead 2022 35,000 29,600 $23.00 $18.00 $100,000 2023 45,000 39,700 $21.80 $16.80 $100,000
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