The William Wallace Company Has Gathered the Following Information for the Year

The William Wallace Company has gathered the following information for the year ended December 31, 20X0: $\begin{array}{ll}\text { Sales } & \$ 67,000 \\\text { Direct materials used } & 12,900 \\\text { Direct labor } & 5,200\\\text { Fixed: }\\\text { Factory overhead } & 6,400 \\\text { Selling expenses } & 5,300 \\\text { Administrative expenses } & 3,700\\\text { Variable: } & \\\text { Factory overhead } & 3,300 \\\text { Selling expenses } & 9,700 \\\text { Administrative expenses } & 2,300\end{array}$ There were no beginning or ending inventories. Gross margin is:

A) $39,200
B) $27,800
C) $31,600
D) $49,700