The following beginning and ending inventory balances apply to Holder Company:

BeginningEnding Raw Materials

Inventory $24,000 $22,000

Work in Process Inventory 32,000 33,000

Finished Goods Inventory 20,000 17,000

During the accounting period, the company purchased $234,000 of direct raw materials. It incurred $180,000 of direct labor costs for the year and allocated $260,000 of manufacturing overhead costs to work in process. There was no overapplied or underapplied overhead. Revenue from goods sold during the year was $800,000. What was Holder's gross margin?

Multiple Choice

• $678,000
• $126,000
• $122,000
• $106,000