During its first year of operations, Silverman Company paid $12,240 for direct materials and $10,700 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,700 while general, selling, and administrative expenses totaled $3,800. The company produced 6,800 units and sold 4,200 units at a price of $7.30 a unit.
What was Silverman's net income for the first year in operation? (Do not round intermediate calculations.)
A. $26,860
B. $7,720
C. $20,960
D. $6,700
