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

question 335

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:

Close Relationships

Emotional bonds between individuals characterized by affection, trust, and mutual support.

Insecure Attachments

Attachment styles characterized by anxiety or avoidance in relationships, stemming from inconsistent caregiving in early life.

Separations

Instances of moving apart or dividing, often used in the context of relationships, materials, or components.

Losses

The act or an instance of losing, such as in finance, where it refers to the money that is spent and not recovered.