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It costs Homer's Manufacturing $0.45 to produce baseballs and Homer sells them for $6 a piece. Homer pays a sales commission of 5% of sales
It costs Homer's Manufacturing $0.45 to produce baseballs and Homer sells them for $6 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 72,500 baseballs in June. If Homer prepares a traditional income statement for the month of June, what would be his operating income? OA. $516,125 OB. $435,000 Oo. $288,625 D. $402.375
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