A manufacturing company produces and sells a single product. The following information relates to the company's production and sales activities for a recent month:

• The company produced and sold 10,000 units of the product at a selling price of $100 per unit.
• The cost of raw materials used in production was $30,000.
• The cost of direct labor used in production was $20,000.
• The cost of factory overhead was $25,000.

Required: (a) Calculate the unit cost of the product. (5 marks) (b) Calculate the gross profit on the sale of 10,000 units of the product. (5 marks)

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