How is the answer 7000
During its first year of operations. Silverman Company paid $14,000 for direct materials and $19,000 for production workers’ wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15,00 a unit. What was Silverman’s net income for the first year in operation? $7,000 $12,000 $28,000 $37,000




