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Suppose Iron City manufactures cast iron skillets. One model is a 1 0 - inch skillet that sells for $ 2 0 . Iron City

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Suppose Iron City manufactures cast iron skillets. One model is a 10-inch skillet that sells for $20. Iron City projects sal costs are $9 per skillet for direct materials, $1 per skillet for direct labor, and $2 per skillet for manufacturing overhead. I beginning of July but wants to have an ending inventory equal to 20% of the next month's sales. Selling and administrat month. Iron City has budgeted cost of goods sold of $6,000 for July.
Compute the budgeted gross profit for July.
q,
A. $6,000
B. $5,000
C. $4,000
D. $3,000
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