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

question 122

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 operating income?

• A)$17,500
• B)$80,000
• C)$30,000
• D)$42,500

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Definitions:

Ethers

A class of organic compounds characterized by an oxygen atom connected to two alkyl or aryl groups, known for their diverse applications in solvents and synthesis.

Mass Spectrometry

An analytical technique that measures the mass-to-charge ratio of ions to identify and quantify molecules in a sample.

Chi-square Statistic

The Chi-square statistic is a measure used in statistics to evaluate how well an observed distribution fits with an expected distribution.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed deviation is due to random chance.