During Its First Year of Operations,Silverman Company Paid $14,000 for Direct

question 107

Multiple Choice

During its first year of operations,Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages.Lease payments and utilities on the production facilities amounted to $17,000 while general,selling,and administrative expenses totaled $8,000.The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What is the amount of gross margin for the first year?

• A) $15,000
• B) $24,000
• C) $20,000
• D) $45,000

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Conceptual Skills

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Executives who are responsible for controlling and overseeing the entire organization.