Question

Amaz-a-nation reported the following data for the year just ended: sales revenue, $1,820,000; cost of goods sold, $920,000; cost of goods manufactured, $566,000; and selling and administrative expenses, $173,000. Amaz-a-nation's gross margin would be: a. $1,073,000 b. $1,254,000 c. $1,081,000. d. $507000. e. $900,000.

Answer 1

Answer:

Option (e) is correct.

Explanation:

Given that,

sales revenue = $1,820,000;

cost of goods sold = $920,000;

cost of goods manufactured = $566,000

selling and administrative expenses = $173,000

Gross margin = Sales revenue - cost of goods sold

                       = $1,820,000 - $920,000

                       = $900,000

Therefore, the Amaz-a-nation's gross margin would be $900,000.