3.

On May 20, 2022, when the spot rate is $1.18/, a U.S. company buys merchandise from a supplier in Italy, at a cost of 100,000. The spot rate is $1.15/ on June 30, the companys year-end. Payment of 100,000 is made on July 30, 2022, when the spot rate is $1.22/. The company sells the merchandise to a U.S. customer for $150,000 in August of 2022.

What gross margin (sales revenue less cost of goods sold) is reported on the sale of the merchandise in August 2022?

Select one:

a. $35,000

b. $32,000

c. $50,000

d. $28,000