Stanley's Bicycles Store Buys Bicycles on Average for $650 and Sells

question 102

Multiple Choice

Stanley's Bicycles store buys bicycles on average for $650 and sells them on average for $770. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1400 a month rent for his store, and also pays $4000 a month to his staff in addition to the commissions. Stanley sold 150 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his contribution margin?

• A)$675
• B)$115,500
• C)$98,175
• D)$230,325

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Definitions:

Empirically Derived Testing

A method of creating assessment tools based on data collected from experiments or observations, as opposed to theory-based methods.

Projective Testing

A psychological assessment tool that uses ambiguous stimuli to elicit responses that reveal aspects of an individual’s personality.

Personality Trait

enduring characteristics or qualities that describe an individual's behavior across different situations.

Self-Serving Bias

The common tendency to attribute one's successes to personal qualities and failures to external factors, protecting self-esteem.