Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stanley's Bicycles store buys bicycles on average for $610 and sells them on average for $800. He pays a sales commission of 15% of sales

image text in transcribed

Stanley's Bicycles store buys bicycles on average for $610 and sells them on average for $800. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1700 a month rent for his store, and also pays $3000 a month to his staff in addition to the commissions. Stanley sold 120 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his operating income? $87,600 $96,000 O $10.220 O $3700

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Corporate Finance Core Principles and Applications

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

3rd edition

978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200

Students also viewed these Accounting questions