Terral prime, an auditing firm, purchases a management information system called alpha duo. most of terral's employees are unfam
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Answer:
b. gross margin would be $4,000.
Explanation:
Distribution costs are considered when calculating gross margin.
Gross margin is given by sales subtracted by the cost of goods sold:
The gross margin would be $4,000.
Although the freight cost should be included when calculating net income, more administrative costs could be added and, thus, net income cannot be determined with the given information.