1.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?

$15,000

$24,000

$20,000

$45,000

2.

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?

$7,000

$12,000

$28,000

$37,000

3.

What is the effect on the balance sheet of making cash sales of inventory to customers on profit?

Assets and equity increase.

Assets and equity decrease.

Assets decrease and equity increases.

Assets increase and equity decreases.

Based on the following operating data, the operating leverage is: Sales Variable costs Contribution margin Fixed costs Income from operations 500,000 280,000 220,000 180,000 40,000 $ 0.18 5.50 1.22 O 12.5