Williamson Corporation acquired two inventory items at a lump-sum cost of $40,000. The acquisition included 3,000 units of product CF and 7,000 units of product 3B. CF normally sells for $12 per unit and 3B for $4 per unit. If Williamson sells 1,000 units of CF, what amount of gross profit should it recognize?

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter11: Long-term Assets
Section: Chapter Questions
Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...
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Williamson Corporation acquired two inventory items
at a lump-sum cost of $40,000. The acquisition included
3,000 units of product CF and 7,000 units of product 3B.
CF normally sells for $12 per unit and 3B for $4 per unit.
If Williamson sells 1,000 units of CF, what amount of
gross profit should it recognize?
Transcribed Image Text:Williamson Corporation acquired two inventory items at a lump-sum cost of $40,000. The acquisition included 3,000 units of product CF and 7,000 units of product 3B. CF normally sells for $12 per unit and 3B for $4 per unit. If Williamson sells 1,000 units of CF, what amount of gross profit should it recognize?
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