Stanley's Bicycles Store Buys Bicycles on Average for $610 and Sells

question 222

Multiple Choice

Stanley's Bicycles store buys bicycles on average for $610 and sells them on average for $780. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1500 a month rent for his store, and also pays $3000 a month to his staff in addition to the commissions. Stanley sold 140 bicycles in June. If Stanley prepares a traditional income statement for the month of June, what would be his operating income?

• A)$109,200
• B)$44,680
• C)$2920
• D)$23,800

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Definitions:

Sea Level

The general level of the ocean's surface, used as a baseline for measuring elevation or depth on Earth.

Sea Cave

A type of cave formed primarily by the wave action of the sea, often found along coastlines.

Sea Stack

An isolated, pillar-like, rocky island or pinnacle near a rocky coastline.

Promontory

A high point of land or rock projecting into a body of water or over a lowland, often offering broad views of the surrounding area.