Routit Corporation had the following sales and production for the past four years: Year 1 Year 2 Year 3 Year 4 Production in units 5,000 6,000 5,000 5,000 Sales in units 4,000 5,000 5,000 7,000 Selling price per unit, variable cost per unit, and total fixed cost are the same each year. There were no beginning inventories in Year 1. Which of the following statements is correct?

a. Under variable costing, net operating income for Year 3 and Year 4 would be the same.
b. Under variable costing, net operating income for Year 2 and Year 3 would be the same.
c. Variable costing net income would exceed absorption costing net income in Year 1.
d. Absorption costing net income would exceed variable costing net income in Year 4.

How do primary and secondary industries differ

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

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