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It costs Homer's Company $0.65 to buy baseballs and Homer sells them for $6 apiece. Homer pays a sales commission of 5% of sales revenue
It costs Homer's Company $0.65 to buy baseballs and Homer sells them for $6 apiece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $14,000 a month for his store, and pays $80,000 a month to his staff in addition to the commissions. Homer sold 67,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his operating income? . O A. $326.875 O B. $405.000 O C. $64,125 OD. $246,875
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