Toby's Farm Store Buys Portable Generators for $500 and Sells

question 335

Multiple Choice

Toby's Farm Store buys portable generators for $500 and sells them for $800. He pays a sales commission of 5% of sales revenue to his sales staff. Toby pays $2,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions. Toby sold 200 generators in June.
-If Toby prepares a contribution margin income statement for the month of June, what would be his operating income?

• A) $48,200
• B) $108,000
• C) $160,000
• D) $56,000

---

Definitions:

Formality

The strict adherence to established rules, ceremonies, or situations, often characterized by official or conventional practices.

Informality

The absence of formal structure or etiquette, resulting in a relaxed and casual atmosphere.

Abusive Supervision

A form of workplace mistreatment where a supervisor consistently displays hostility towards subordinates, often through verbal or non-verbal behaviors.

High Power Distance

A cultural dimension that describes how people belonging to a specific culture perceive and handle inequalities in power within their social and organizational structures.