During its first year of operations, Martin Company paid $4,000 for direct materials and $8,500 for production workers' wages. Lease payments and utilities on the production facilities amounted to $7,500 while general, selling, and administrative expenses totaled $3,000. The company produced 5,000 units and sold 4,000 units at a price of $7.50 a unit.

1. What is the amount of gross margin for the first year? SHOW ALL WORK

2. What is the amount of finished goods inventory for the first year? SHOW ALL WORK

3. What was Martin's net income for the first year in operation? SHOW ALL WORK