1. determine the effect of tge purchase of the additional 20,000 units on the 2024 gross profit from the sale of zelenex and the payment due to jim Lester

In 2023, the Moncrief Company purchased from Jim Lester the nght to be the sole distributor in the westem states of a product called Zelenex in payment, Moncriet agreed to pay tester 20% of the gross profit recognized from the sale of Zelenex in 2024. Moncrief reports inventory using the periodic LIFO assumption. Late in 2024, the following information is avallable conceining the inventory of Zelenex By the end of the year, the purchase price of Zelenex had risen to $40 per unit On December 28,2024 , three days before year end. Moncrief is in a position to purchase 20,000 additional units of Zelenex at the $40 per unit price Due to the increase in purchase pice, Monctief will increase the selling price in 2025 to $80 per unit imventory on hand before the purchase, 15,000 units, is sulficient to meet the next six months' sales and the company does not anticipate any significant changes in purchase price dufing 2025 Required: Required: Determine the effect of the purchase of the additional 20,000 units on the 2024 gross profit from the sale of Zeleaex and the payment due to sim Lester