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In 2013, Mandrake Motorcycles declared bankruptcy. Subsequently, it was determined that in fiscal 2012, the company produced more units than needed to fill pending orders. The result was a substantial decrease in production cost per unit. The company uses the LIFO inventory method.
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Discuss how (or if) this information is consistent with the results of the analysis conducted in Problem, parts a and b.
Mandrake Motorcycles
Income Statements
Mandrake Motorcycles was started three years ago. The company manufactures and sells classic cycles similar in style to Harley-Davidson and Indian motorcycles made in the late 1940s. The following financial information for the company.
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