Hartzog Corporation's most recent balance sheet and income statement appear below:

Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.

The gross margin percentage for Year 2 is closest to:

A. 65.8%

B.15.2%

C. 70.9%

D. 41.5%