Use the Information Below to Answer the Following Questions

Multiple Choice

Use the information below to answer the following questions:
Holidays Ltd manufactures caravans. Transactions for the year ended 30 June 2012 were as follows:
(i) 1200 caravans were manufactured at a cost of $15 000 each.
(ii) 1000 caravans were sold for $20 000 each.
(iii) Cash was collected on 950 of the caravans sold.
-What was the reported profit for the year ended 30 June 2012 if revenue was recognised at the point of sale?

A) $4 750 000
B) $5 000 000
C) $6 000 000
D) $2 000 000.