Answer the following questions using the information below:
The following information pertains to Bondi Creations:
$\begin{array}{ll}
\hline & \
\hline \text { Manufacturing costs } & \$ 1,500,000 \
\hline \text { Units manufactured } & 30,000 \
\hline \text { Units sold } & 29,500 \text { units sold for } \$ 85 \text { per unit } \
\hline \text { Beginning inventory } & 0 \text { units } \
\hline\\hline
\end{array}$
-What is the amount of gross margin?
A)$2 507 500
B)$1 500 000
C)$1 475 000
D)$1 032 500

Question

Answer the following questions using the information below:
The following information pertains to Bondi Creations:
 $\begin{array}{ll}
\hline & \
\hline \text { Manufacturing costs } & \$ 1,500,000 \
\hline \text { Units manufactured } & 30,000 \
\hline \text { Units sold } & 29,500 \text { units sold for } \$ 85 \text { per unit } \
\hline \text { Beginning inventory } & 0 \text { units } \
\hline\\hline
\end{array}$
-What is the amount of gross margin?
A)$2 507 500
B)$1 500 000
C)$1 475 000
D)$1 032 500

Quizplus · Accepted Answer

Gross margin is calculated as (Sales Revenue - Cost of Goods Sold). Sales Revenue = 29,500 units * $85 = $2,507,500. Cost per unit = $1,500,000 / 30,000 = $50. Cost of Goods Sold = 29,500 units * $50 = $1,475,000. Gross Margin = $2,507,500 - $1,475,000 = $1,032,500.

Answer the Following Questions Using the Information Below: the Following

Answer the Following Questions Using the Information Below:
the Following