Answer:
The gross margin from these transactions of Green Company is is $8,198
Explanation:
Gross margin : The gross margin is shows a difference between sales, cost of goods sold, and others cost also.
In mathematically,
Gross margin = Sales - Cost of good sold - freight cost of pucrhase
where,
Sales = $24,900
Cost of good sold = Purchase × ( 1 - Discount rate)
= $16,700 × (1 - 0.04)
= $16,032
Freight cost = $670
Now apply these amounts in the above equation
So gross margin = $24,900 - $16,032 - $670
= $8,198
The freight on sales is paid by the buyer, hence it is not considered.
Thus, The gross margin from these transactions of Green Company is is $8,198