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

question 190

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 traditional income statement for the month of June,what would be his gross profit?

• A)$130,000
• B)$ 80,000
• C)$ 30,000
• D)$ 50,000

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