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

question 166

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

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Definitions:

Emotional Reactions

Refers to the psychological responses, including feelings and expressions, to internal or external events.

Observable Behaviours

Actions or reactions of an individual, in a particular situation, that are visible and measurable.

Consciousness

The state or quality of awareness, or being aware of an external object or something within oneself.

John B. Watson

An American psychologist who established the psychological school of behaviorism.