The following information was drawn from the inventory records of Alpha Company as of December 31, Year 2. Beginning inventory (purchased in Year 1) 200 Units @ $5 each. Purchases made in Year 2 800 Units @ $8 each. Units Sold 900 Units @ $12 each. Which of the following is the amount of the gross margin assuming Alpha uses a FIFO cost flow method?

A. $500

B. $800

C. $4,200

D. $6,600