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A company uses a periodic inventory system with the average cost method.
On 1 April, a company has beginning inventory of 100 units at cost of $20 per unit. During the month of April, the company makes further purchases as below:
10 April: 300 units @ $30 per unit20 April: 200 units @ $50 per unitDuring the month of April, 450 units were sold at $80 per unit. In additional to the cost of goods sold, other expenses incurred in April are $5,000.
Problem 1: What is the net profit for the month of April? (Please ignore income tax and GST.)
Select one:
a. $15,250b. $25,750c. $36,000d. $15,750
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