During its first year of operations, Silverman Company paid $11,440 for direct materials and $9900 for production workers' wages. Lease payments and utilities on the production facilities amounted to $8900 while general, selling, and administrative expenses totaled $4400. The company produced 5600 units and sold 3400 units at a price of $7.90 a unit.

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

$ 8500$26,860$5520$11,880