Reference no: EM132990647

Question - Sanchez Company engaged in the following transactions during Year 1:

Started the business by issuing $12,300 of common stock for cash.

The company paid cash to purchase $7,500 of inventory.

The company sold inventory that cost $4,900 for $9,900 cash.

Operating expenses incurred and paid during the year, $4,400.

Sanchez Company engaged in the following transactions during Year 2:

The company paid cash to purchase $10,600 of inventory.

The company sold inventory that cost $9,100 for $16,500 cash.

Operating expenses incurred and paid during the year, $5,400.

Required - Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for the Year 2?