le Edit View History Bookmarks Tools Window Help 10 Quiz 6/10 Total points award
ID: 2551399 • Letter: L
Question
le Edit View History Bookmarks Tools Window Help 10 Quiz 6/10 Total points awarded Help During its frst year of operations, Slverman Company paid $11,360 for direct materials and $11,100 for production workers' wages. Lease payments and utlities on the production facilties amounted to $10,100 while general, selling, and administrative expenses totaled $3,400. The company produced 7,400 units and sold 4,600 units at a price of $6.90 a unit What is the amount of gross margin for the fiest year? o1 Multiple Choice $ 21340 K.
Explanation / Answer
The Answer is $ 12,320
Gross Margin for the first year
= ((11360+11100+10100) x (7400 - 4600)) / 7400
= 32560 x (2800/7400)
= $ 12,320
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.