Final answer:
The gross profit related to the sale to Ricard for the quarter ended March 31, 2025, is $77,400.
Step-by-step explanation:
To calculate the gross profit related to the sale to Ricard for the quarter ended March 31, 2025, we need to determine the portion of revenue that can be recognized during this period. Since the installation is expected to take six months and was completed on June 18, 2025, we can calculate the fraction of installation revenue that corresponds to the quarter ended March 31, 2025.
First, let's determine the proportion of the installation fee that corresponds to the quarter. The installation fee has a standalone selling price of $34,400 and is expected to take six months to complete. Therefore, for the quarter ended March 31, 2025, we can recognize 3/6 or 1/2 of the installation fee, which is $17,200.
Next, we can calculate the revenue related to the sale of goods. The standalone selling price of the goods is $318,200, and since the installation fee is recognized separately, we can subtract the installation fee from the sales price. Therefore, the revenue related to the goods alone is $352,600 - $17,200 = $335,400.
The cost of goods sold is the cost of the goods, which is $258,000.
Finally, we can calculate the gross profit as the revenue related to goods minus the cost of goods sold: $335,400 - $258,000 = $77,400.