Part B Schrute Farm Sales buys portable generators for $460 and sells them for $740 He pays a sales commission of 5 of sales revenue to his sales staff Mr Schrute pays $4,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions Mr Schrute sold 500 generators in June If Mr Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin A $618,500 B $121,500 C $370,000 D $248,500 Jean's Fitness Club provides monthly memberships as well as personal training sessions The personal trainers earn 50 of the revenue for all personal training sessions The Fitness Club also sells nutrition products Jean's general ledger accounts indicate the following for the year The front desk staff wages expense remains the same throughout the year Account Amount Account Amount Membership revenue $141,000 Personal trainer wages expense Personal training revenue $78,000 Space rental expense $11,000 Product sales $66,000 Straight line depreciation expense $6,000 Cost of product sold $38,000 Rental insurance expense $3,000 Front desk staff wages expense $17,000 If a contribution margin income statement is prepared for the year, what is the amount of total revenue A $285,000 B $323,000 C $141,000 D $219,000 Jean's Fitness Club provides monthly memberships as well as personal training sessions The personal trainers earn 50 of the revenue for all personal training sessions The Fitness Club also sells nutrition products Jean's general ledger accounts indicate the following for the year The front desk staff wages expense remains the same throughout the year Account Amount Account Amount Membership revenue $141,000 Personal trainer wages expense Personal training revenue $78,000 Space rental expense $11,000 Product sales $67,000 Straight line depreciation expense $6,000 Cost of product sold $35,000 Rental insurance expense $3,000 Front desk staff wages expense $15,000 If a traditional income statement is prepared for the year, what is Gross Profit A $251,000 B $321,000 C $286,000 D $282,000

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 27, 2024

Part B Schrute Farm Sales buys portable generators for $460 and sells them for $740. He pays a sales commission of 5% of sales revenue

Part B

Schrute Farm Sales buys portable generators for $460 and sells them for $740. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $4,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions. Mr. Schrute sold 500 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin?

A.$618,500

B. $121,500

C.$370,000

D.$248,500

Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all personal training sessions. The Fitness Club also sells nutrition products. Jean's general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year.

Account	Amount	Account	Amount
Membership revenue	$141,000	Personal trainer wages expense	?
Personal training revenue	$78,000	Space rental expense	$11,000
Product sales	$66,000	Straight line depreciation expense	$6,000
Cost of product sold	$38,000	Rental insurance expense	$3,000
Front desk staff wages expense	$17,000

If a contribution margin income statement is prepared for the year, what is the amount of total revenue?

A.$285,000

B.$323,000

C.$141,000

D.$219,000

Account	Amount	Account	Amount
Membership revenue	$141,000	Personal trainer wages expense	?
Personal training revenue	$78,000	Space rental expense	$11,000
Product sales	$67,000	Straight line depreciation expense	$6,000
Cost of product sold	$35,000	Rental insurance expense	$3,000
Front desk staff wages expense	$15,000