Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

25) Scheute Farm Sales buys portable generators for $450 and sells them for $720. He pays a sales commission of 5% of sales revenue to

image text in transcribed
25) Scheute Farm Sales buys portable generators for $450 and sells them for $720. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $2.000 a month rent for his store, and also pays $1,700 a month to his staff in addition to the commissions. Mr. Schrute sold 200 generators in June. If Mr. Schrute prepares a traditional income statement for the month of June, what would be his operating income? 25) A) $43,100 B) $64.900 C) $54,00 D) $144,000 26) Schrute Farm Sales buys portable generators for $450 and sells them for $720. He pays a sales commission of 5% of sales revenue to his sales staffMr. Schrute, pays $2.000 a month rent for his store, and also pays $1,700 a month to his staff in addition to the commissions. Mr. Schrute sold 200 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his operating income? 26) A) $144,000 B) $97 200 C) $43.100 D) $50,500 27) The contribution margin ratio explains the percentage of each sales dollar that 27) A) contributes towards variable costs. B) contributes towards sales revenue. C) contributes towards fixed costs and generating a profit. D) contributes towards period expenses

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions