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 $1600 a month rent for his store, and also pays $5000 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?

		$2220
		$100,380
		$109,200
		$10,560

The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year.

Selling price per unit	$8.40
Variable manufacturing costs per unit	$1.88
Variable selling and administrative expenses per unit	$4.55
Fixed manufacturing overhead (in total)	$80,000
Fixed selling and administrative expenses (in total)	$81,000
Units produced during the year	520,000
Units sold during year	160,000

Using absorption costing, what is operating income for last year? (Round any intermediary calculations to the nearest cent.)

		$1,344,000
		$1,828,200
		$210,200
		$859,800