If One Unit of Product X Used $2

question 114

Multiple Choice

If one unit of Product X used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?

• A) $8.00.
• B) $5.50.
• C) $2.50.
• D) $1.60.
• E) $0.90.

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Definitions:

Suture Material

A specific type of thread used in surgery to close wounds or incisions.

Extreme Cold

Conditions characterized by severely low temperatures that can pose health risks and environmental challenges.

Sterile Materials

Items that have been treated to eliminate all forms of microorganisms and are free from contamination.

Incision

A precise cut made through the skin or tissues during surgery or medical procedures.