During its first year of operations, the Martin Company paid $4,000 for direct materials and $8,500 for production worker wages. Lease and utility payments for the production facility totaled $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 per unit.

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