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

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

Manufacturing Profit

The profit earned from the manufacturing operations after deducting the costs associated with the production of goods.

Inventory Cost

The total cost incurred to procure, produce, and store unsold goods, including raw materials, labor, and overhead expenses.

Leased Lathe

An asset acquired for use over a predetermined period under a lease agreement, specifically referring to a machine tool used for shaping metal or wood.