Your Store Buys Ice Cream for $1

Multiple Choice

Your store buys ice cream for $1.50 a half litre (not including general and administrative expenses of $0.75) and sells it for $4 a half litre.Which of the following statements is true?

A) Your gross profit per half litre is $2.50.
B) Your gross profit per half litre is $1.75.
C) $2.50 is recorded in an account titled Gross Profit.
D) $1.75 is recorded in an account titled Gross Profit.