Porter Company Has Provided the Following Data for the Second

question 10

Multiple Choice

Porter Company has provided the following data for the second quarter of the most recent year:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 300,000 \\\hline \text { Fixed Manufacturing Overhead } & 55,000 \\\hline \text { Direct Labour } & 72,500 \\\hline \text { Fixed Selling Expenses } & 46,250 \\\hline \text { Variable Manufacturing Overhead } & 41,000 \\\hline \text { Variable Administrative Expenses } & 48,000 \\\hline \text { Direct Materials } & 51,500 \\\hline \text { Fixed Administrative Expenses } & 44,500 \\\hline \text { Variable Selling Expenses } & 49,750 \\\hline\end{array}$ Assume that direct labour is a variable cost and that there was no beginning or ending inventories.



-What was the gross margin(loss) for Porter Company for the second quarter?

• A) $(12,500).
• B) $80,000.
• C) $131,500.
• D) $135,000.

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