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A company makes widgets. The costs incurred for a particular period are as follows
Direct material $40,000
Direct labor $60,000
Overhead $ 50,000
The company makes 5,000 widgets and sells 2,000 units for $60 each
1. What is the cost of making a unit?
2. What is the cost of goods sold?
3. What is the gross profit?
4. If selling and administrative costs are $30,000 what is the net profit?
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