Gloria's Decorating produces and sells a mantel clock for $150 per unit. In 2016, 42,000 clocks were produced and 40,000 were sold. Other information for the year includes:

Direct materials $40.00 per unit produced

Direct manufacturing labor $ 5.00 per unit produced

Variable manufacturing costs $ 7.50 per unit produced

Sales commissions $12.50 per part sold

Fixed manufacturing costs are $62.50 per unit produced

Administrative expenses, all fixed at $17.50 per unit produced

What is the gross profit?

		$900,000
		$3,900,000
		$1,400,000
		$200,000

Answer rating: 100% (QA)

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