Firm X sold 1,000 units of their product last month at a price of $500. If it costs them $300 to produce each unit, what is their gross margin for the month?

Step 1: Calculate the total revenue The total revenue is calculated by multiplying the number of units sold by the selling price per unit. In this case, Firm X sold 1,000 units at a price of $500 each. So, the total revenue is 1,000 units *$500/unit = $500,000.

Step 2: Calculate the total cost of goods sold (COGS) The total COGS is calculated by multiplying the number of units sold by the cost to produce each unit. In this case, it costs Firm X $300 to produce each unit and they sold 1,000 units. So, the total COGS is 1,000 units *$300/unit = $300,000.

Step 3: Calculate the gross margin The gross margin is calculated by subtracting the total COGS from the total revenue. In this case, the gross margin is $500,000 -$300,000 = $200,000.

So, Firm X's gross margin for the month is $200,000.