The Shirt Shop had the following transactions for T-shirts for Year 1

Its first year of operations:

January 20 Purchased 400 units @ $4 = $ 1,600

April 21 Purchased 130 units @ $6 = 780

July 25 Purchased 250 units @ $8 = 2,000

September 19 Purchased 100 units @ $10 = 1,000

During the year, The Shirt Shop sold 720 T-shirts for $15 each.

b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.