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:

Decimal Places

The amount of digits found following the decimal point in a numerical value.

Experimental Growth Model

A theoretical construct that uses empirical data to model how quantities grow over time, often nonlinearly.

Population

The entire group of individuals or items that is the subject of a statistical study.

Compounded Monthly

Refers to the process of applying interest to a principal sum so that each month's interest earnings also earn interest in subsequent months.