Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
Refer to Figure 2-15. What is the gross margin (profit)?
A) $11,500
B) $11,600
C) $ 4,500
D) $ 4,600

Question

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
  Refer to Figure 2-15. What is the gross margin (profit)?
A) $11,500 
B) $11,600 
C) $ 4,500 
D) $ 4,600

Quizplus · Accepted Answer

Gross margin (profit) can be calculated as Sales - Cost of goods sold. In this case, the sales are $23,000 and the cost of goods sold is $11,400, therefore the gross margin (profit) is $23,000 - $11,400 = $11,600.

Figure 2-15 Information from the Records of Chrome Ponies Enterprises