Sanchez Company engaged in the following transactions during Year 1:

1. Started the business by issuing $13,700 of common stock for cash.
2. The company paid cash to purchase $8,200 of inventory.
3. The company sold inventory that cost $5.600 for $11.650 cash.
4. Operating expenses incurred and paid during the year, $5,100.

Sanchez Company engaged in the following transactions during Year 2:

1. The company paid cash to purchase $12.000 of inventory.
2. The company sold inventory that cost $9,800 for $18,250 cash.
3. Operating expenses incurred and paid during the year, $6.100.

Note: Sanchez uses the perpetual inventory system.

What is Sanchez's gross margin for Year 2?