Searls Corporation, a merchandising company, reported the following results for July:

Number of units sold........ 2,700 units

Selling price per unit $664 per unit

Unit cost of goods sold $405 per unit

Variable selling expense per unit $48 per unit

Total fixed selling expense $56,500

Variable administrative expense per unit $13 per unit

Total fixed administrative expense $118,200

Cost of goods sold is a variable cost in this company.

The gross margin for July is: A) $1,618,100 B) $699,300 C) $359,900 D) $534,600

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