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Question - During its first year of operations, Silver Company paid $7,000 for direct materials and $9,500 for production workers' wages. Lease payments and utilities on the production facilities amounted to $8,500 while general, selling, and administrative expenses totaled $4,000. The company produced 5,000 units and sold 3,000 units at a price of $7.50 a unit. What was Silver's net income for the first year in operation?
a. $6,000
b. $14,000
c. $3,500
d. $18,500
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