Ballard Company uses the perpetual inventory system. The company purchased $8,100 of merchandise from Andes Company under the terms 3/10, net/30. Ballard paid for the merchandise within 10 days and also paid $260 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $15,200 cash. The amount of gross margin for this merchandise is:

a. 7100

b. 8100

c. 6840

d. 7083