Gonzalez Company has no beginning and ending inventories, and reports the following data about its...
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Accounting
Gonzalez Company has no beginning and ending inventories, and reports the following data about its only product:
Direct materials used $300,000
Direct labor $80,000
Fixed indirect manufacturing $100,000
Fixed selling and administrative $190,000
Variable indirect manufacturing $20,000
Variable selling and administrative $90,000
Selling price(per unit) $50
Units produced and sold 10,000
Gonzalez Company uses the absorption approach to prepare the income statement. What is the gross margin?
A) $0
B) $20,000
C) $100,000
D) $120,000
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