Sanchez Company engaged in the following transactions during Year 1 . Started the business by issuing $11,700 of common stock for cash. The company paid cash to purchase $7,200 of inventory. The company sold inventory that cost $4,600 for $9,150 cash. Operating expenses incurred and paid during the year, $4,100. Sanchez Company engaged in the following transactions during Year 2 The company paid cash to purchase $10,000 of inventory. The company sold inventory that cost $8,800 for $15,750 cash. Operating expenses incurred and paid during the year, $5,100. Sanchez uses the perpetual inventory system. What is Sanchez's gross margin for the Year 2? Multiple Choice $6,950. $8,800. $1,850 $5,750