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

question 63

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 was Silverman's net income for the first year in operation?

• A) $7,000
• B) $12,000
• C) $28,000
• D) $37,000

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Definitions:

Inner Thought

The private mental processes, reflections, or considerations within an individual.

Lev Vygotsky

A Soviet psychologist best known for his theories on cognitive development, particularly the social development theory which emphasizes the fundamental role of social interaction in the development of cognition.

Assimilation

The cognitive process where new information is integrated into existing cognitive schemas, beliefs, and understandings.

Accommodate

In cognitive psychology, to modify existing cognitive schemas, perceptions, or understandings to incorporate new information.