A Company Has the Following Information for Its First Month

A company has the following information for its first month of operations: $\begin{array}{ll}\text { Raw materials used } & \$ 25,000 \\\text { Sales (\$65 per unit) } & \$ 78,000 \\\text { Directlabor } &\$ 42,000\\\text { Variable factory overhead }&\$17,000\\\text { Fixed factory overheadunknown Variable sellingand }\\\text { administrative }&\$3,000\\\text { Fixed sellingand administrative }&\$5,000\\\text { Gross profit }&\$30,000\\\text { Contributionmargin }&\text { unknown }\\\end{array}$

Ending inventories:
Raw materials $\$ 7,000$
WIP none
Finishedgoods $\quad$$\quad$ 1,200 units were produced during the period.

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

Correct Answer:

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