Stubbs Company uses the perpetual inventory method and the weightedaverage cost flow method. On January 1, Year 2, Stubbs purchased 1,000 units of inventory that cost $8.00 each. On January 10 , Year 2 , the company purchased an additional 600 units of inventory that cost $5.25 each. If the company sells 1,400 units of inventory for $16 each, what is the amount of gross margin reported on the income statement? (Round your intermediate calculations to two decimal places.)