If One Unit of Product Z2 Used $2

question 102

Multiple Choice

If one unit of Product Z2 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:

Lunchbox

A container used to carry food, often for consumption at work or school.

Revenue

the total amount of money received by a company for goods sold or services provided during a certain period.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a product.

Demand Elasticity

The measure of how much the quantity demanded of a good or service changes in response to a change in price, indicating the sensitivity of consumers to price changes.