Answer the following questions using the information below:
Hamour Company reported the following:

-What is the amount of gross margin?
A) $1,645,000
B) $3,525,000
C) $5,405,000
D) $1,750,000

Question

Answer the following questions using the information below:
Hamour Company reported the following:

-What is the amount of gross margin?
A) $1,645,000 
B) $3,525,000 
C) $5,405,000 
D) $1,750,000

Quizplus · Accepted Answer

Gross margin is calculated as sales revenue minus cost of goods sold. In this case, sales revenue is $5,405,000 and cost of goods sold is $3,760,000, so gross margin is $5,405,000 - $3,760,000 = $1,645,000.

Answer the Following Questions Using the Information Below