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The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations.

January 20	Purchased 540 units @ $ 7 =	$3,780
April 21	Purchased 340 units @ $9 =	3,060
July 25	Purchased 420 units @ $12 =	5,040
September 19	Purchased 230 units @ $14 =	3,220

During the year, The Shirt Shop sold 1,230 T-shirts for $23 each.

c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.