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Schrute Farm sales buys portable generators for $460 and sells them for $720. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $2,000 a month rent for his store, and also pays $1, 900 a month to his staff in addition to the commissions. Mr. Schrute sold 200 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin?

A. $99, 200
B. $243, 200
C. $144,000
D. $44, 800

2 Answers

6 votes

Answer:

D

Step-by-step explanation:

D. 44, 800

User Robert Mearns
by
6.4k points
7 votes

Answer:

D. $44, 800

Step-by-step explanation:

Please see attachment.

Schrute Farm sales buys portable generators for $460 and sells them for $720. He pays-example-1
Schrute Farm sales buys portable generators for $460 and sells them for $720. He pays-example-2
User Naquisha
by
6.4k points