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It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $7 a piece. Homer pays a sales commission of 5% of sales

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It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $7 a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $14,000 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 contribution margin income statement for the month of June, what would be his contribution margin? A. $79,750 B. $507,500 C. $427,750 D. $453,125

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