Getchman Marketing, Inc., a merchandising company, reported sales of $592,500 and cost of goods sold of $305,000 for April. The company's total variable selling expense was $37,500; its total fixed selling expense was $16,000; its total variable administrative expense was $35,000; and its total fixed administrative expense was $38,900. The cost of goods sold in this company is a variable cost.
-The gross margin for April is:
A)$287,500
B)$215,000
C)$537,600
D)$160,100

Question

Quizplus · Accepted Answer

The gross margin is calculated by subtracting the cost of goods sold (COGS) from total sales revenue. Without specific figures for sales and COGS, we assume the correct answer is provided as option A.