3. On May 20, 2022, when the spot rate is $1.18/€, a U.S. company buys merchandise from a supplier in Italy, at a cost of €100,000. The spot rate is $1.15/€ on June 30, the company’s year-end. Payment of €100,000 is made on July 30, 2022, when the spot rate is $1.22/€. The company sells the merchandise to a U.S. customer for $150,000 in August of 2022. What gross margin (sales revenue less cost of goods sold) is reported on the sale of the merchandise in August 2022?
Select one:
a. $35,000
b. $32,000
c. $50,000
d. $28,000