Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jeffry Corp manufactures sporting goods. It costs $0.75 to produce baseballs and Jeffry sells them for $4.00 apiece. Jeffry pays a sales commission of 5%

Jeffry Corp manufactures sporting goods. It costs $0.75 to produce baseballs and Jeffry sells them for $4.00 apiece. Jeffry pays a sales commission of 5% of sales revenue to his sales staff. Jeffry also pays $12,000 a month rent for his sales store, and also pays $75,000 a month to his staff in addition to the commissions. Jeffry sold 67,500 baseballs in June.

If Jeffry prepares a contribution margin income statement for the month of June, what would be his contribution margin?

$205,875

$270,000

$64,125

$334,125

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

Auditing In The Food Industry From Safety And Quality To Environmental And Other Audits

Authors: M Dillon, C Griffith

1st Edition

1855734508, 978-1855734500

Students also viewed these Accounting questions