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 $12,900 of common stock for cash 2) The company paid cash to purchase $7.800 of inventory. 3) The company sold inventory that cost $5,200 for $10,650 cash. 4) Operating expenses incurred and paid during the year, $4,700. Sanchez Company engaged in the following transactions during Year 2 1) The company paid cash to purchase $11,200 of inventory. 2) The company sold inventory that cost $9,400 for $17.250 cash. 3) Operating expenses incurred and paid during the year, $5,700. Note: Sanchez uses the perpetual inventory system What is Sanchez's gross margin for Year 2? Multiple Choice $6,050 $7,850 $2,150 $9.400