What is the gross profit Major Motors earned last month?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?
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