Levy's Used Cars Uses the Specific Identification Method of Costing

Multiple Choice

Levy's Used Cars uses the specific identification method of costing inventory. During March, Levy purchased three cars for $5,000, $6,500, and $8,000, respectively. During March, the first two cars are sold for $7,500 each. What is Levy's gross profit for March?

A) $2,000
B) $3,500
C) $500
D) $7,000