Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Power on the Go buys portable generators for $480 and sells them for $740. The company pays a sales commission of 5% of sales revenue

image text in transcribed
Power on the Go buys portable generators for $480 and sells them for $740. The company pays a sales commission of 5% of sales revenue to the sales staff. The company pays $3,000 a month rent for the store, and also pays $2,000 a month to staff in addition to the commissions. The company sold 600 generators in June. If the company prepares a contribution margin income statement for the month of June, what would be the contribution margin? A. $156,000 B. $133,800 C. $310,200 D. $444,000

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

Special Edition Of Managerial Accounting Volume 2 For Miami Dade College

Authors: WilD

4th Edition

0077542711, 978-0077542719

More Books

Students also viewed these Accounting questions