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It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8 a piece. Homer pays a sales commission of 5% of sales
It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8 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 $77,000 a month to his staff in addition to the commissions. Homer sold 69,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin? O A. $556,000 OB. $462,175 OC. $93,825 OD. $649,825
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