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:

Political Regime

The form of government or a set of rules, cultural or social norms, that regulate the operation of a government or institution and its interactions with society.

Proselytizing

The act of attempting to convert someone to another religion or belief system.

Geographic Location

A specific place or position within a larger context, defined by its longitude, latitude, and other geographical factors.

Collective Mind

The shared beliefs, values, and attitudes of a group that shape its behavior and understanding of the world.