Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sage's Bicycles store buys bicycles on average for $ 6 1 0 and sells them on average for $ 8 0 0 . They pay

Sage's Bicycles store buys bicycles on average for $610 and sells them on average for $800. They pay a sales commission of 15% of sales revenue to his sales staff. Sage pays $1,600 a month rent
for the store, and also pays $4,000 a month to its staff in addition to the commissions. Sage sold 120 bicycles in June. If Sage prepares a contribution margin income statement for the month of June,
what would be the contribution margin?
A. $8,400
B. $81,600
C. $96,000
D. $14,400
image text in transcribed

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

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions