Required Information [The following information applies to the questions displayed below] Sanchez Company engaged in the following transactions during Year t 1) Started the business by issuing $12,100 of common stock for cash. 2) The company paid cash to purchase $7,400 of inventory. 3) The company sold inventory that cost $4,800 for $9,650 cash. 4) Operating expenses incurred and paid during the year, $4,300. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $10,400 of inventory. 2) The company sold inventory that cost $9,000 for $16,250 cash. 3) Operating expenses incurred and paid during the year, $5,300. Note: Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for Year 2?