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

question 264

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:

Employee Behaviour

The actions and conduct of individuals within an organization, impacting workplace productivity, culture, and morale.

HRM Effectiveness

Refers to the efficiency and impact of human resource management practices on improving employee performance and achieving organizational goals.

Customer Satisfaction

The measure of how products or services provided by a company meet or surpass customer expectations.

Controllable Cost

An expense over which a company or individual has the ability to manage or dictate the amount spent.