Wendell's Bicycles Store Buys Bicycles on Average for $500 and Sells

question 133

Multiple Choice

Wendell's Bicycles store buys bicycles on average for $500 and sells them on average for $800.He pays a sales commission of 10% of sales revenue to his sales staff.Wendell pays $1,500 a month rent for his store,and also pays $3,000 a month to his staff in addition to the commissions.Wendell sold 100 bicycles in June.
-If Wendell prepares a contribution margin income statement for the month of June,what would be his contribution margin?

• A)$ 80,000
• B)$ 22,000
• C)$138,000
• D)$ 58,000

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Definitions:

Theodore Roosevelt

The 26th President of the United States, who served from 1901 to 1909, known for his progressive policies, conservation efforts, and leadership of the Rough Riders during the Spanish-American War.

Resource Management

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Middle-Class Progressives

Individuals from the middle economic tier of society who advocate for social reforms and progressive policies to address issues like poverty, education, and healthcare.