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

question 205

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 contribution margin?

• A) $268,000
• B) $160,000
• C) $52,000
• D) $108,000

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Definitions:

Root Cortex

The layer of plant tissue between the epidermis and the vascular cylinder in roots, important for storage and transport of nutrients.

Collenchyma Cells

Plant cells characterized by their elongated shape and thickened cell walls, providing support and structure.

Macronutrients

Essential nutrients required by organisms in relatively large quantities for growth and health, including carbohydrates, proteins, and fats.

Micronutrients

Essential nutrients that organisms need in small amounts, such as vitamins and minerals, for proper health and development.