Figure 2-16 an Appliance Repair Shop Purchased Materials Costing $9,000

Multiple Choice

Figure 2-16 An appliance repair shop purchased materials costing $9,000 in May.The beginning inventory of material parts was $4,500 and the ending inventory of material parts was $4,000.Payments for direct labor for May totaled $27,000, secretarial costs were $2,000, and overhead of $5,000 was incurred.In addition, $5,000 was spent on advertising and $2,000 for the franchise name.Revenue for May was $50,000.
-
Refer to Figure 2-16.What is the gross margin for May?

A) $41,500
B) $43,500
C) $ 1,500
D) $ 8,500