The FTC was entrusted with the duty to adjudicate the matters relating to advertisement and fair trade practices. The FTC was entrusted with the duty for decades. The FTC started making rules which distinguished between fair and unfair trade practices.In the due process right of participants was limited in cases of violation of these rules. The process did not include the stage of cross-examination. The person who is booked for violating the rules will be given full adjudication but the legitimacy of the rule cannot be challenged in any case. It was more certain that the party charged with the violation of such rules will be adjudicated. The challenge against the new rules was filed in the court on the ground of limiting the rights of parties. To find: The factors that are responsible for upholding the rule.

Question

Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014: Selling price $15.00 per t-shirt Variable costs: Production (manufacturing costs) - $3.50 per t-shirt Selling & administration - $1.00 per t-shirt Fixed costs: Production (manufacturing costs) - $1,000,000 per year Selling & administration - $2,000,000 per year During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under variable costing?

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Chapter 23, Problem 1BS

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Case summary:The FTC was entrusted with the duty to adjudicate the matters relating to advertisement and fair trade practices. The FTC was entrusted with the duty for decades. The FTC started making rules which distinguished between fair and unfair trade practices.In the due process right of participants was limited in cases of violation of these rules. The process did not include the stage of cross-examination. The person who is booked for violating the rules will be given full adjudication but the legitimacy of the rule cannot be challenged in any case. It was more certain that the party charged with the violation of such rules will be adjudicated. The challenge against the new rules was filed in the court on the ground of limiting the rights of parties.

To find:The factors that are responsible for upholding the rule.

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Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014: Selling price $15.00 per t-shirt Variable costs: Production (manufacturing costs) - $3.50 per t-shirt Selling & administration - $1.00 per t-shirt Fixed costs: Production (manufacturing costs) - $1,000,000 per year Selling & administration - $2,000,000 per year During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under variable costing?

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