Managerial Accounting $-$ Spring$21$

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Company XYZ is a smart phone merchant. The company purchases smart phones directly from the manufacturer and sells them to customers. During the month of April, the company purchased $60$ smart phones and paid $$900$ for each one. The company managed to sell $55$ smart phones during the same month for $$1,200$ each. The company incurred total Selling and Administrative costs of $$4,000$ of which $20\%$ is fixed costs. Assume that XYZ did not have a beginning inventory during April, what was the gross margin $($$$)$ for April?

a$.$ None of the given answers

b$.13,300$

c$.8,800$

d$.16,500$

e$.12,500$