Answer the following questions using the information below:
The East Company manufactures several different products. Unit costs associated with Product ORD203 are as follows:

-For last year, Wampum Enterprises reported revenues of $420,000, cost of goods sold of $108,000, cost of goods manufactured of $101,000, and total operating costs of $70,000. Gross margin for last year was:
A)$319,000
B)$312,000
C)$249,000
D)$242,000

Question

Answer the following questions using the information below:
The East Company manufactures several different products. Unit costs associated with Product ORD203 are as follows:
 
-For last year, Wampum Enterprises reported revenues of $420,000, cost of goods sold of $108,000, cost of goods manufactured of $101,000, and total operating costs of $70,000. Gross margin for last year was:
A)$319,000 
B)$312,000 
C)$249,000 
D)$242,000

Quizplus · Accepted Answer

To find the gross margin, we need to subtract the cost of goods sold from the revenues:
Gross margin = Revenues - Cost of goods sold
Gross margin = $420,000 - $108,000
Gross margin = $312,000

Note that the information about the unit costs for Product ORD203 is not relevant to this question.

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