The following data apply to the question.

	Units	Price
Beginning inventory	200	$1.20
First purchase	400	$1.30
Second purchase	250	$1.40
Sales	550	$2.00

Assuming a FIFO cost flow, the amount of gross margin reported on the income statement would be

Question 1 options:

A)

$415.

B)

$695.

C)

$405.

D)	None of the above.