Assume the perpetual inventory method is used.

1)	Vernon Company purchased merchandise inventory that cost $16,500 under terms of 2/10, n/30 and FOB shipping point.
2)	The company paid freight cost of $800 to have the merchandise delivered.
3)	Payment was made to the supplier within 30 days.
	All of the merchandise was sold to customers on account for $25,700 and delivered under terms FOB shipping point with freight cost amounting to $500.

The gross margin from these transactions of Vernon Company is