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Quidditch, Inc. is a merchandiser of a single line of broomsticks. At the beginning of the day, the shop had 15 brooms in its inventory.

Quidditch, Inc. is a merchandiser of a single line of broomsticks. At the beginning of the day, the shop had 15 brooms in its inventory. During the day, 5 new brooms were delivered to the shop. By close of business, only 9 brooms remained in inventory.

The purchase price of each broom from the supplier is $250. In addition, the company pays $5 for shipping on each broomstick and 2% of the purchase price for delivery insurance on each broomstick. These costs have remained consistent since the company began business.

Quidditch sells each broomstick for $475.

Which of the following statements is correct?

A.

The product cost per broomstick is $250.

B.

The gross profit per broomstick is $215.

C.

The ending inventory reported on the companys balance sheet is $2,860.

D.

The companys total gross profit for the day is $1,935.

E.

The shipping cost of $5 per broom would be reported as an operating expense on the income statement.

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