Zippy company manufactured 10,000 units in december with a total product cost of $26,215 they had zero finished goods inventory at the start of december. in december zippy sold 7,525 units at a unit price of $5.53. period expenses were $3,777. what is the amount of zippy's gross profit (otherwise know as gross margin)?

Gross profit= $28,374.68

Explanation:

Giving the following information:

Zippy company manufactured 10,000 units in December.

Total product cost of $26,215

They had zero finished goods inventory at the start of December.

In December Zippy sold 7,525 units at a unit price of $5.53.

Period expenses were $3,777.

Unitary cost= 26215/10000= $2.6215

Gross profit= revenues - cost of goods sold

Gross profit= revenues  - (cost of manufactured goods- ending finished goods inventory)

Gross profit= (7525*5.53) - (2.6215*7525 - 2.6215*2475)

Gross profit= $28,374.68

c is the correct answer.