Bingimton Company Provided the Following Information for Last Month -Refer to the Figure

question 103

Multiple Choice

Bingimton Company provided the following information for last month.There were no beginning and ending inventories.
$\begin{array}{lr}\text { Production in units } & 1,000 \\\text { Direct materials cost } & \$ 3,000 \\\text { Direct labour cost } & \$ 4,000 \\\text { Overhead cost } & \$ 7,600 \\\text { Sales commission per unit sold } & \$ 2 \\\text { Price per unit sold } & \$ 24 \\\text { Fixed selling and admini strative expense } & \$ 5,000\end{array}$
-Refer to the Figure.What was the gross profit for Bingimton Company last month?

• A)$2,400
• B)$7,400
• C)$9,400
• D)$14,600

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Definitions:

Peak Seasonal

Periods during which demand for certain goods or services increases significantly, often related to the time of year.

Cash Discount

A cash discount is a reduction in the invoice price offered by a seller to the buyer in return for early payment of their bill, as a way to encourage quicker payment.

Net 30

A payment term indicating that full payment is due within 30 days of the invoice date.