One unit of A is composed of two units of B and three units of C. Each B is composed of one unit of F. C is made of one unit of D, one unit of E, and two units of F. Items A, B, C, and D have 20, 50, 60, and 25 units of on-hand inventory, respectively. Items A, B, and C use lot-for-lot (L4L) as their lot-sizing technique, while D, E, and F require multiples of 50, 100, and 100, respectively, to be purchased. B has scheduled receipts of 30 units in period 1. No other scheduled receipts exist. Lead times are one period for items A, B, and D, and two periods for items C, E, and F. Gross requirements for A are 20 units in period 1, 20 units in period 2, 60 units in period 6, and 50 units in period 8. Find the planned order releases for all items.
Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo. The company began operations on May 1 and operated at 100% of capacity (270,000 units) during the first month, creating an ending inventory of 24,000 units. During June, the company produced 246,000 garments during the month but sold 270,000 units at $300 per unit. The June manufacturing costs and selling and administrative expenses were as follows:
What is the reason for the difference in the amount of income from operations reported in (A) and (B)?