A Company Has the Following Information for Its First Month

A company has the following information for its first month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 25,000 \\\text { Sales ( } \$ 65 \text { per unit) } & \$ 78,000 \\\text { Direct labor } & \$ 42,000 \\\text { Variable factoryoverhead } & \$ 17,000 \\\text { Fixed } &\\factory\\overhead&\text { unknown }unknown\\Variable\\sellingand\\administrative&\$3,000\\\text { Fixed sellingand administrative } & \$ 5,000 \\\text { Grossprofit } & \$ 30,000 \\\text { Contributiormargin } & \text { unknown }\\\text { Ending inventories: }\\\text { Raw materials } & \$ 7,000 \\\text { WIP } & \text { none } \\\text { Finished goods } & 1,200 \text { units }\end{array}$ were sold during the period.

A) 1,200 units
B) 2,400 units
C) 0 units
D) 3.600 units

Correct Answer:

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