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Information needed and case Randy Reseller operates a small shop on the beach that sells a surfboard. After getting his April income statement he Yelled

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Information needed and case Randy Reseller operates a small shop on the beach that sells a surfboard. After getting his April income statement he "Yelled I'll never understand this accounting stuff. Last month (June) we sold 1,000 surfboards and earned $68,500 in operating income. This month (July) we sold 1,500. I thought we would make $102,750. However, his income statement for July shows a net income of $121,000. He is frustrated and says how can I ever make plans if I can't predict my net income. That accountant has some explaining to do. I am giving her one more chance to explain this, as he dials his accountant Alex Figures. "Will you explain this operating income thing to me one nm time?" Randy ask Alex. After I saw last month's income statement, I thought each surfboard we sold generated S68.50 in net income; now this month each one generates $80.67! There was no change in the price we paid for the surfboard, so I don't understand how this happened. If I had known I was going to have $121,000 in operating income, I would have looked more seriously at adding to our product lines. Required: 1. Assume Alex's roll. Explain to Randy why his use of operating income per surfboard was in error (10 points) Explanation assessed (Scale of 1 to 5) 1 2 3 4 5

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