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It costs Homer's Manufacturing $0.65 to produce baseballs and Homer sells them for $6 a plece. Homer pays a sales commission of 5% of sales
It costs Homer's Manufacturing $0.65 to produce baseballs and Homer sells them for $6 a plece. 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 $80,000 a month to his staff in addition to the commissions. Homer sold 71,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin? O A. $67.925 OB. $429,000 OC. $361,075 OD. $496,925
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