Answer :
If The company produced 6050 units and sold 3700 units at a price of $8.20 per unit, then the amount of gross margin for the year is $16,440.
During the 1st year of operations, the Silverman Company incurred direct utilities expenses on the production facilities amounting to $9,200. Additionally, general selling and administrative expenses totaled $4,700.
To calculate the gross margin for the year, we need to first calculate the cost of goods sold (COGS) and then subtract it from the total sales.
Step 1: Calculate the COGS:
COGS = Direct utilities expenses + General selling and administrative expenses
COGS = $9,200 + $4,700
COGS = $13,900
Step 2: Calculate the total sales:
Total sales = Units sold * Price per unit
Total sales = 3,700 units * $8.20 per unit
Total sales = $30,340
Step 3: Calculate the gross margin:
Gross margin = Total sales - COGS
Gross margin = $30,340 - $13,900
Gross margin = $16,440
Therefore, the amount of gross margin for the year is $16,440.
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