Required information [The following information applies to the questions displayed below.) Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $10,700 of common stock for cash. 2) The company paid cash to purchase $6,700 of inventory. 3) The company sold inventory that cost $4,100 for $7,900 cash. 4) Operating expenses incurred and paid during the year, $3,600. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $9,000 of inventory. 2) The company sold inventory that cost $8,300 for $14,500 cash. 3) Operating expenses incurred and paid during the year, $4,600. Note: Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for Year 2