Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Miami Powerhouse Co. manufactures portable generators for $470 and sells them for $730. The company pays a sales commission of 5% of sales revenue to

image text in transcribed
Miami Powerhouse Co. manufactures portable generators for $470 and sells them for $730. The company pays a sales commission of 5% of sales revenue to the sales staff. The company pays $6000 a month rent for the store, and also pays $1800 a month to staff in addition to the commissions. The company sold 300 generators in June. If the company prepares a contribution margin income statement for the month of June, what would be the operating income? $219,000$59,250$151,950$74,850

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

How To Beat The IRS At Its Own Game Strategies To Avoid And Fight An Audit

Authors: Amir D Aczel

1st Edition

1568580487, 978-1568580487

More Books

Students also viewed these Accounting questions

Question

What is double taxation?

Answered: 1 week ago

Question

8. Do the organizations fringe benefits reflect diversity?

Answered: 1 week ago

Question

7. Do the organizations social activities reflect diversity?

Answered: 1 week ago