Run Rhody, a retail chain of running stores had the following inventory of the Air300X sneakers available during the month of July. Each unit is one pair of sneakers. Run Rhody uses the LIFO method for it inventory costing. Beg Inventory Purchase 7/15/2022 Total units sold # Units 500 600 1,100 1,000 Unit Cost Total Cost 56.00 52.00 $28,000 $31,200 1. If the selling price of each pair of sneakers is $100, what is Run Rhody's cost of goods sold for the month of July? 2. Instead, let's assume that on July 30, the distributor dropped the price of the Air300X to $50 per unit and RR purchasing manager ordered 400 more pairs that were delivered on July 31. Now what is RR's cost of goods sold and gross margin for 1,000 sneakers sold at $100 per pair. 3. Did RR need the additional pairs of sneakers to meet monthly demand? How does this purchase affect their profits? 4. What if monthly bonuses are tied to profits? Do you think there is an ethical dilemma in deciding to purchase the additional 400 pairs? Explain.

Run Rhody, a retail chain of running stores had the following inventory of the Air300X sneakers available during the month of July. Each unit is one pair of sneakers. Run Rhody uses the LIFO method for it inventory costing. 1. If the selling price of each pair of sneakers is $100, what is Run Rhody's cost of goods sold for the month of July? 2. Instead, let's assume that on July 30 , the distributor dropped the price of the Air300X to $50 per unit and RR purchasing manager ordered 400 more pairs that were delivered on July 31 . Now what is RR's cost of goods sold and gross margin for 1,000 sneakers sold at $100 per pair. 3. Did RR need the additional pairs of sneakers to meet monthly demand? How does this purchase affect their profits? 4. What if monthly bonuses are tied to profits? Do you think there is an ethical dilemma in deciding to purchase the additional 400 pairs? Explain