Question
It costs Homer's Manufacturing $0.65 to produce baseballs and Homer sells them for $9 a piece. Homer pays a sales commission of 5% of sales
It costs Homer's Manufacturing
$0.65
to produce baseballs and Homer sells them for
$9
a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays
$13,000
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
68,500
baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin?
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
