Turner Corporation Acquired Two Inventory Items at a Lump-Sum Cost

Multiple Choice

Turner Corporation acquired two inventory items at a lump-sum cost of $100,000. The acquisition included 3,000 units of product LF, and 7,000 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Turner sells 1,000 units of LF, what amount of gross profit should it recognize?

A) $3,750
B) $11,250.
C) $20,000.
D) $23,750.