Sanchez Company engaged in the following transactions during Year 1: 1) Started the business by issuing $44,600 of common stock for cash. 2) The company paid cash to purchase $27,700 of inventory. 3) The company sold inventory that cost $17,300 for $33,850 cash. 4) Operating expenses incurred and paid during the year, $15,300. Sanchez Company engaged in the following transactions during Year 2: 1) The company paid cash to purchase $37,800 of inventory. 2) The company sold inventory that cost $34,100 for $60,250 cash. 3) Operating expenses incurred and paid during the year, $19,300. Note: Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for Year 2? Multiple Choice $6,850 $22.450 O $26.150 O $34,100 O