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marshall27 [118]
4 years ago
7

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is___

__________.
a. $600,000
b. $270,000
c. $240,000
d. $750,000
Business
1 answer:
Sati [7]4 years ago
4 0

Answer:

<em>Gross Profit= Sales - Cost of Goods Sold</em>

Cost of Goods sold of 1 unit = $ 450,000/50,000

= $ 9

Cost of Goods Sold of 45,000 units = 45,000 * $ 9

= $ 405,000

<em>Gross Profit of 45,000 units = Sales revenue of 45,000 units - Cost of Goods sold of 45,000 units</em>

= 45,000 * $ 15 (Per Unit rate) - $ 405,000

= $ 675,000 - $ 405,000

= <em>$ 270,000 i.e. option b</em>

Explanation:

Refer to the answer.

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