Concept explainers
Use the following information to answer questions 4 through 7.
Suppose Iron City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $20. Iron City projects sales of 500 10-inch skillets per month. The production costs are $9 per skillet for direct materials, $1 per skillet for direct labor, and $2 per skillet for manufacturing
Compute the budgeted gross profit for July.
- a. $6,000
- b. $5,000
- c. $4,000
- d. $3,000
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