Use the Following Information for Questions:
a Company Had the Following

question 5

Multiple Choice

Use the following information for questions:
A company had the following inventory activity during May: $\begin{array}{lrrrr}&\text { Units}&\text { Unit Cost }&\text {Total Cost }&\text { Unit Price }\\\hline\text { Beginning inventory } & 100 & \$ 20.00 & \$ 2,000 & \\\text { Purchase: May 3 } & 900 & \$ 21.00 & 18,900 & \\\text { Sale: May 5 } & (900) & & & \$ 30.00 \\\text { Purchase: May 15 } & 1,000 & \$ 21.00 & 21,000 & \\\text { Sale: } & (900) & & & \$ 30.00\end{array}$
-If the company uses a perpetual system and the FIFO cost flow assumption, what is the gross margin on the May 5 sale closest to?

• A)$6,100
• B)$8,100
• C)$8,200
• D)$8,550

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Definitions:

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The strategic process of establishing a brand or product in the market to differentiate it from competitors, targeting specific consumer preferences.

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