Amaz-a-nation reported the following data for the year just ended: sales revenue, $1,850,000; cost of goods sold, $860,000; cost of goods manufactured, $566,000; and selling and administrative expenses, $183,000. What is Amaz-a-nation's gross margin?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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Amaz-a-nation reported the following data for the year just ended: sales revenue, $1,850,000; cost of goods sold, $860,000; cost of goods manufactured, $566,000; and selling and administrative expenses, $183,000. What is Amaz-a-nation's gross margin?

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Gross margin is the business's margin after deducting the primary expenses that are incurred directly on the goods.

Gross margin = Sales revenue - Cost of goods sold

 

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