Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

it costsHomer's Manufacturing to produce baseballs and Homer sells them for a piece. Homer pays a sales commission of5% of sales revenue to his sales

it costsHomer's Manufacturing to produce baseballs and Homer sells them for a piece. Homer pays a sales commission of5% of sales revenue to his sales staff. Homer also pays $17,000 a month rent for his factory andstore, and also pays $79,000 a month to his staff in addition to the commissions. Homer sold 72,500 baseballs in June. If Homer prepares a traditional income statement for the month ofJune, what would be his grossprofit?

A.$362,500

B.$47,125

C.$315,375

D.$ 409625

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

5th Canadian edition

1259269868, 978-1259269868

More Books

Students also viewed these Accounting questions

Question

In your view, what is the most important line of the cash budget?

Answered: 1 week ago

Question

How is vacation and sick time accrued?

Answered: 1 week ago