Question

kiger, inc., sells merchandise for $3,500. the cost of the item sold is $1,600, and the expenses of shipping the item to the buyer, paid by kiger, are $150. kiger's gross margin on this sale is

Answer 1

The gross margin on this sale is $1,750.

Step-by-step explanation:

Gross margin is the difference between the selling price of a product and the cost of goods sold. To calculate the gross margin on this sale, we need to subtract the cost of the item sold ($1,600) and the expenses of shipping the item ($150) from the selling price ($3,500).

Therefore, the gross margin on this sale is $3,500 - $1,600 - $150 = $1,750.

Answer 2

Kiger, Inc.'s gross margin on the sale is calculated by subtracting the cost of goods sold and additional expenses from the sales revenue, resulting in a gross margin of $1,750.

Step-by-step explanation:

To calculate Kiger, Inc.'s gross margin on the sale of their merchandise, we must subtract the cost of the item sold and any additional expenses directly related to the sale from the selling price. In this example, the selling price of the merchandise is $3,500. The cost of the item sold is $1,600 and the shipping expenses are $150. The gross margin is calculated as follows:

Gross Margin = Sales Revenue - Cost of Goods Sold (COGS) - Additional Expenses

Gross Margin = $3,500 - $1,600 - $150 = $1,750

Therefore, Kiger, Inc.'s gross margin on this sale is $1,750.