Use the following data to answer bellow Questions
On November 30, 2020, a U.S. company purchased merchandise on credit from a Swiss supplier at an invoice price of CHF1,000, when the exchange rate was $1.05/CHF. On December 31, 2020, the company's year-end, the exchange rate was $1.045/CHF. On February 1, 2021, the company purchased the CHF1,000 for $1.048/CHF and paid the invoice. On March 15, 2021, when the exchange rate was $1.044, the company sold the merchandise to a U.S. customer for $2,000.
-What is the U.S. company's gross margin (sales revenue minus cost of sales) on the March 15, 2021 sale?

Question

Use the following data to answer bellow Questions 
On November 30, 2020, a U.S. company purchased merchandise on credit from a Swiss supplier at an invoice price of CHF1,000, when the exchange rate was $1.05/CHF. On December 31, 2020, the company's year-end, the exchange rate was $1.045/CHF. On February 1, 2021, the company purchased the CHF1,000 for $1.048/CHF and paid the invoice. On March 15, 2021, when the exchange rate was $1.044, the company sold the merchandise to a U.S. customer for $2,000.
-What is the U.S. company's gross margin (sales revenue minus cost of sales) on the March 15, 2021 sale?

Quizplus · Accepted Answer

Cost of goods sold = $1,050, unaffected by changes in rates subsequent to purchase.
$2,000 - $1,050 = $950

Use the Following Data to Answer Bellow Questions