Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

It costs Homer's Manufacturing $ 0 . 5 5 to produce baseballs and Homer sells them for $ 9 apiece. Homer pays a sales commission

It costs Homer's Manufacturing $0.55 to produce baseballs and Homer sells them for $9 apiece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $15,000 a month rent for his factory and store, and also pays $81,000 a month to his staff in addition to the commissions. Homer sold 67,500 baseballs in June. If Homer prepares a traditional income statement for the month of June, what would be his gross profit?
A. $37,125
B. $474,375
C. $570,375
D. $607,500
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Warren Buffett Accounting Book Reading Financial Statements For Value Investing

Authors: Stig Brodersen, Preston Pysh

1st Edition

1939370159, 9781939370150

More Books

Students also viewed these Accounting questions

Question

=+What is the VIF for Age?

Answered: 1 week ago

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago

Question

What are the outcomes the client wants?

Answered: 1 week ago

Question

What has been done before?

Answered: 1 week ago