ing Enabled: Exam #$1($i$)$

TB MC Qu$.3-66($Static$)$ Sanchez Company engaged in the following...

Sanchez Company engaged in the following transactions during Year $1$:

Started the business by jssuing $$42,000$ of common stock for cash.

The company paid cash to purchase $$26,400$ of inventory.

The company sold inventory that cost $$16,000$ for $$30,600$ cash.

Operating expenses incurred and paid during the year, $$14,000.$

Sanchez Company engaged in the following transactions during Year $2$:

The company paid cash to purchase $$35,200$ of inventory.

The company sold inventory that cost $$32,800$ for $$57,000$ cash.

Operating expenses incurred and paid during the year, $$18,000.$

Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for the Year $2?$

Multiple Choice

$$24,200$

$$32,800$