There are 300 purely competitive farms in the local dairy market. of the 300 dairy farms, 298 have a cost structure that generates profits of $48 for every $600 invested. instructions: enter your answers as whole numbers. a. what is the percentage rate of return for these 298 dairies? percent. b. the other two dairies have a cost structure that generates profits of $44 for every $400 invested. what is their percentage rate of return? percent. c. assuming that the normal rate of profit in the economy is 10 percent, and firms cannot copy each other's technology, will there be entry or exit? will the change in the number of firms affect the two that earn $44 for every $400 invested? what will be the rate of return earned by most firms in the industry in long-run equilibrium? percent. if firms can copy each other’s technology, what will be the rate of return eventually earned by all firms? percent.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.