During its first year of operations, Silver Company paid $10,740 for direct materials and $11,300 for production workers' wages. Lease payments and utilities on the production facilities amounted to $10,300 while general, selling, and administrative expenses totaled $3,200. The company produced 7,700 units and sold 4,800 units at a price of $6.70 a unit.

What is the amount of gross margin for the first year?