The manager of Stone Company is given a bonus based on gross profit . Gross profit is $11,500 for FIFO and $10,100 for LIFO. The bonus rate is 15%. How much higher (lower) is the manager's bonus if FIFO is adopted instead of LIFO?

Question

Quizplus · Accepted Answer

The difference in gross profit between FIFO and LIFO is $11,500 - $10,100 = $1,400. 
15% of $1,400 is $210. 
Therefore, the manager's bonus would be $210 higher if FIFO is adopted instead of LIFO.

The Manager of Stone Company Is Given a Bonus Based