JCS Incorporated Experienced the Following Transactions During Its First Year

Multiple Choice

JCS Incorporated experienced the following transactions during its first year of business.The company purchased $16,000 of merchandise from Kent Company.The company paid $2,000 for selling and administrative expenses and purchased land for $5,000.All of the merchandise purchased was sold for $30,000 cash.What is the company's gross margin?

A) $7,000
B) $14,000
C) $23,000
D) $30,000