Coble Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated shaper. Additional information is provided below for the most recent month:

Estimates at the beginning of the month:
Estimated total fixed manufacturing overhead	$	51,300
Capacity of the shaper		380	hours
Actual results:
Sales	$	112,000
Direct materials	$	12,300
Direct labor	$	17,500
Actual total fixed manufacturing overhead	$	51,300
Selling and administrative expense	$	6,000
Actual hours of shaper use		330	hours

The gross margin that would be reported on the income statement prepared for internal management purposes would be closest to:

Multiple Choice

• $37,650

• $24,900

• $31,650

• $112,000