Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $780. He pays a sales commission of 15% of sales

image text in transcribed

Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $780. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1,600 a month rent for his store, and also pays $5,000 a month to his staff in addition to the commissions. Stanley sold 140 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his operating income? O A. $2.220 OB. $10,560 O C. $100,380 OD. $109.200

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

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

Students also viewed these Accounting questions