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1. For each of the following inventory errors occurring in 2013, determine the effect of the error on 2013's cost of goods sold, net income, and retained earnings. Assume that the error is not discovered until 2014 and that a periodic inventory system is used. Ignore income taxes.
U = Understated O = Overstated NE = Noeffect
If the total net income after dropping the hard rubber line is $105,000, hard rubber's avoidable fixed expenses were?
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