What is the financing profit of Blue Manufacturing on a leased lathe?

A) $7,000
B) $8,500
C) $10,500
D) $17,500

Financing Profit

The profit generated from the difference between the cost of financing sources (such as loans) and the income generated from their use.

Inventory Cost

The total cost associated with obtaining, storing, and managing inventory, including purchase costs, storage costs, and any other expenses related to maintaining or handling inventory.

Leased Lathe

A contract arrangement where a lathe, a machine tool used for shaping metal or wood, is rented for use over a specific time period.