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

question 56

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

• A) $72,000
• B) $48,200
• C) $60,000
• D) $160,000

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Definitions:

Mobile Genetic Element

A type of DNA that can move around in the genome. Common examples include transposons (“jumping genes”) and plasmids.

Deceptive Pollination

A reproductive strategy in some plants where they trick pollinators into visiting flowers without offering a reward, thereby ensuring pollination.

Predation

The biological interaction where one organism, the predator, hunts and consumes another organism, the prey, as a source of energy and nutrients.

Herbivory

The eating of plants by animals, a critical ecological interaction that influences plant community structure and dynamics.