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What is the gross margin that sanford earned on the order

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Question - Sanford and Son sells athletic equipment. The following events, related to a special customer order, occur as described below:

-September 1, 2019: Sanford receives the special order for 300 football helmets at a selling price of $100 each, including delivery at a future convenient time and location. The customer, with whom Sanford has had a long-term, trouble-free relationship, pays $5,000 as a deposit, and agrees to pay the rest on delivery. Sanford immediately orders $20,000 worth of helmets from its supplier and pays a $5,000 deposit for them.

-September 20, 2019: Sanford pays a $15,000 balance due to the supplier upon delivery of the helmets to its warehouse.

-October 1, 2019: The customer calls for delivery of the helmets and pays the balance of $25,000 when they arrive at the customer site.

Required - What is the gross margin that Sanford earned on the order?

A. $10,000

B. $20,000

C. $25,000

D. $30,000

Reference no: EM133037858

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