Jeppson Company Manufactures Computer Hard Drives - Using Absorption Costing,what Is Gross Profit for Last Month

Multiple Choice

Jeppson Company manufactures computer hard drives.The following data is related to sales and production of the computer hard drives for last year. $\begin{array}{|l|c|}\hline \text { Selling price per unit } & \$ 100.00 \\\hline \text { Variable manufacturing costs per unit } & \$ 45.00 \\\hline \text { Variable selling and administrative expenses per unit } &\$ 6.00 \\\hline \text { Fixed manufacturing overhead (in total) } & \$ 30,000 \\\hline \text { Fixed selling and administrative expenses (in total) } & \$ 8,000 \\\hline \text { Units produced during year } & 1,500 \\\hline \text { Units sold during year } & 1,200 \\\hline\text { Units in beginning inventory }&0\\\hline\end{array}$

- Using absorption costing,what is gross profit for last month?

A) $198,000
B) $120,000
C) $ 42,000
D) $ 72,000