During Its First Year of Operations, Silverman Company Paid $15,085

question 54

Multiple Choice

During its first year of operations, Silverman Company paid $15,085 for direct materials and $10,200 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,200 while general, selling, and administrative expenses totaled $4,700. The company produced 6,050 units and sold 3,700 units at a price of $8.20 a unit.What was Silverman's net income for the first year in operation?

• A) $4,550
• B) $25,640
• C) $5,055
• D) $21,140

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Definitions:

Basidium

Clublike structure in which nuclear fusion, meiosis, and basidiospore production occur during sexual reproduction of club fungi.

Multinucleated

Cells that contain more than one nucleus, often found in certain fungal cells and muscle fibers.

Diploid

An organism or cell with two sets of chromosomes, one from each parent, typical of most animals and plants, symbolized as 2n.

Slime Molds

Eukaryotic organisms that exhibit traits of fungi and protozoa, often found in moist, decaying forest matter.