If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?
A. $2.50.
B. $8.00.
C. $1.60.
D. $5.50.
E. $0.90.
Answer: C
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