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

question 69

Multiple Choice

Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $780. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1600 a month rent for his store, and also pays $5000 a month to his staff in addition to the commissions. Stanley sold 140 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his operating income?

• A)$10,560
• B)$109,200
• C)$100,380
• D)$2220

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