Washington Company has the following data about its only product: Washington Company uses the absorption approach.What is the gross margin?
A)$240,000
B)$540,000
C)$600,000
D)$660,000

Question

Washington Company has the following data about its only product:   Washington Company uses the absorption approach.What is the gross margin?
A)$240,000 
B)$540,000 
C)$600,000 
D)$660,000

Quizplus · Accepted Answer

To calculate gross margin using the absorption approach, we need the following information:
- Total revenue from sales
- Cost of goods sold (includes direct materials, direct labor, and overhead)
- Gross profit (which is then used to calculate gross margin)

Unfortunately, the given data only includes product identifiers and does not provide any of the required information. Therefore, we cannot calculate the gross margin and none of the answer choices are correct.

Washington Company Has the Following Data About Its Only Product