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:

Strong Critical Thinking Skills

The ability to engage in clear, rational, and disciplined thinking analyzing and evaluating information and arguments.

Reflective Judgment

A critical thinking process in which individuals consider various perspectives and evidence before reaching a conclusion.

Strong Critical Thinkers

Individuals who excel in the systematic evaluation of arguments and information to make rational decisions and solve problems efficiently.

Reasoning

The mental process of generating conclusions, judgments, or inferences from facts or premises.