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It costs Homer's Manufacturing $0.55 to produce baseballs and Homer sells them for $6 apiece. Homer pays a sales commission of 5% of sales revenue
It costs Homer's Manufacturing $0.55 to produce 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 $17,000 a month rent for his factory and store, and also pays $79,000 a month to his staff in addition to the commissions. Homer sold 71,500 baseballs in June. If Homer prepares a traditional income statement for the month of June, what would be his gross profit? A. $39,325 B. $429,000 C. $389,675 D. $293,675
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