Barney Company uses the perpetual inventory system. The company purchased $8,250 of merchandise from Bittiker Company under the terms n/30. Barney also paid $330 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $17,500 cash. The amount of gross margin for this merchandise is:

$9,250.

$8,920.

$7,920.

$8,250.