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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
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 $78,000 a month to his staff in addition to the commissions. Homer sold 70,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin? OA. $45,825 OB. $236,175 OC. $250,275 OD. $282,000
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