Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands ($000) of dollars:

            Sales                                                                           $31,800

            Purchases of direct materials                                         7,000

            Direct labor                                                                    5,000

            Work in process inventory, 1/1                                         800

            Work in process inventory, 12/31                                  3,000

            Finished goods inventory, 1/1                                       4,000

            Finished goods inventory, 12/31                                   5,300

            Accounts payable, 1/1                                                    1,700

            Accounts payable, 12/31                                                1,500

            Direct materials inventory, 1/1                                       6,000

            Direct materials inventory, 12/31                                   1,000

            Indirect labor                                                                    600

            Indirect materials used                                                      500

            Utilities expense, factory                                               1,900

            Depreciation on factory equipment                               3,500

            Gross Margin  _________________