The following information pertains to Alleigh's Mannequins: $\begin{array}{ll}
\text { Manufacturing costs } & \$ 1,500,000 \
\text { Units manufactured } & 30,000 \
\text { Units sold } & 29,500 \text { units sold for } \$ 85 \text { per unit } \
\text { Beginning inventory } & 0 \text { units }
\end{array}$ What is the amount of gross margin?
A) $1,475,000
B) $1,500,000
C) $2,507,500
D) $1,032,500

Question

Quizplus · Accepted Answer

The gross margin is calculated as (Sales Revenue - Cost of Goods Sold). Sales Revenue = 29,500 units * $85 = $2,507,500. Cost per unit = $1,500,000 / 30,000 = $50. Cost of Goods Sold = 29,500 units * $50 = $1,475,000. Gross Margin = $2,507,500 - $1,475,000 = $1,032,500.

The Following Information Pertains to Alleigh's Mannequins What Is the Amount of Gross Margin? A) $1,475,000 B)

The Following Information Pertains to Alleigh's Mannequins What Is the Amount of Gross Margin?
A) $1,475,000
B)