Final answer:
In the absence of specific cost information for the unit sold under the FIFO method, it's not possible to determine the gross profit from the sale of one unit on March 23 for $1,125. General examples provided include calculations unrelated to FIFO where a firm's loss is calculated, and recognizing profit or loss by comparing selling price to average cost.
Step-by-step explanation:
The subject of the question refers to the calculation of gross profit using the FIFO (First-In, First-Out) inventory costing method in a business context. To calculate the gross profit for March when one unit is sold on March 23 for $1,125, we would need the cost of the unit sold. However, the provided information does not include the cost of the specific unit sold or the beginning inventory. Typically, with FIFO, we sell the oldest inventory first, so we would need to know the cost associated with the oldest unit on hand to calculate gross profit.
Based on the filler information provided, for a scenario unrelated to the FIFO question, where the firm sells five units at a price of $25 per unit, we have total revenues of $125 with total costs of $130, thus incurring a loss of $5. This would imply negative gross profit. To determine at a glance whether a company is making or losing money, one would compare the selling price of the product to the average cost of producing it. Finally, the marginal unit is adding to profits if the revenue from selling that unit exceeds the cost of producing that additional unit.