100 units of merchandise were acquired during 1983 by Douglas Traders at a total cost of £3910 (including VAT at 15 per cent). 50 units were subsequently sold at a price of £57.50 each, including VAT. The profit (or loss) on the sale of the 50 units was:

(a) £1035 loss;

(b) £920 profit;

(c) £1175 profit;

(d) £800 profit.