Karen, Inc. manufactures calculators that sell for $40 each. Each calculator uses $15 in direct materials and $5 in direct labor per unit. Karen has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Karfen made 400 calculators, using 1,000 machine hours in 40 batches. What is the gross profit for one calculator? A) $20 B) $8 C) $25 D) $35 1. Hint: Gross Profit is selling price minus Cost of Goods Sold. B A D C