Hopewell Ltd

Multiple Choice

Hopewell Ltd.had 1,000 units of inventory on hand at the beginning of the year worth $4,000.During the year, they purchased 15,000 units at $4.25 and 10,000 units at $4.40.They sold 24,500 units during the year at an average price of $7.50 and pay taxes at 25%.If Hopewell uses average cost for inventory valuation, what was their gross profit for the year closest to?

A) $58,800.00
B) $77,780.50
C) $78,400.00
D) $80,605.75