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    Gross Margin

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    Solo Company is a small merchandising firm. During the next month, the company expects to sell 500 units. The company has the following revenue and cost structure:

    Selling price per unit 60
    Cost per unit 15
    Sales commission 10% of sales
    Advertising expense 5,000 per month
    Administrative expense 3,000 per month plus 20% of sales

    Reference: 5-11

    The expected gross margin next month is:

    5,500
    7,500
    22,500
    13,500

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    https://brainmass.com/business/accounting/gross-margin-68408

    Solution Preview

    total sales= 500 multiplied by 60= 30000

    Costs:
    Cost per ...

    Solution Summary

    Gross Margin

    $2.19

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