Stanley's Bicycles Store Buys Bicycles on Average for $600 and Sells

question 265

Multiple Choice

Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $750.He pays a sales commission of 15% of sales revenue to his sales staff.Stanley pays $1,400 a month rent for his store,and also pays $3,000 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 contribution margin?

• A)$4,500
• B)$90,000
• C)$85,500
• D)$175,500

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