If one unit of Product Z2 used $3.00 of direct materials and $3.50 of direct labor, sold for $9.00, and was assigned overhead at the rate of 35% of direct labor costs, how much gross profit was realized from this sale? (Round your intermediate calculations and final answer to two decimal places.)

Multiple Choice

• $6.50.

• $1.27.

• $1.23.

• $9.00.

• $2.50