Sanchez Company engaged in the following transactions during Year 1:

1. 1) Started the business by issuing $12,700 of common stock for cash.
2. 2) The company paid cash to purchase $7,700 of inventory.
3. 3) The company sold inventory that cost $5,100 for $10,400 cash.
4. 4) Operating expenses incurred and paid during the year, $4,600.

Sanchez Company engaged in the following transactions during Year 2:

1. 1) The company paid cash to purchase $11,000 of inventory.
2. 2) The company sold inventory that cost $9,300 for $17,000 cash.
3. 3) Operating expenses incurred and paid during the year, $5,600.

Note: Sanchez uses the perpetual inventory system.

What is Sanchez's gross margin for Year 2?