Boersma Sales Inc a merchandising company reported sales of

Boersma Sales, Inc., a merchandising company, reported sales of 7,100 units in September at a selling price of $682 per unit. Cost of goods sold, which is a variable cost, was $317 per unit. Variable selling expenses were $44 per unit and variable administrative expenses were $22 per unit. The total fixed selling expenses were $157,200 and the total administrative expenses were $338,000.

The gross margin for September was:

Multiple Choice

$4,347,000

$1,627,700

$2,591,500

$2,122,900

Solution

Gross Margin is $2591500