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It costs Homer's Manufacturing $0.45 to produce baseballs and Homer sells them for $4 a piece. Homer pays a sales commission of 5% of sales

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It costs Homer's Manufacturing $0.45 to produce baseballs and Homer sells them for $4 a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $17,000 a month rent for his factory and store, and also pays $75,000 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 contribution margin? A. $239,625 B. $43,875 C. $226,125 D. $270,000

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