Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 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 the Tyler Enterprises for March 2011 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

The gross margin (profit) can be calculated by subtracting the cost of goods sold from the net sales revenue. The net sales revenue for March 2011 is $30,000 ($20,000 + $10,000). The cost of goods sold is $18,400 ($10,400 + $8,000). Therefore, the gross margin (profit) is $11,600 ($30,000 - $18,400).

Figure 2-15 Information from the Records of the Tyler Enterprises