Schrute Farm Sales Buys Portable Generators for $450 and Sells

Multiple Choice

Schrute Farm Sales buys portable generators for $450 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 $1,700 a month to his staff in addition to the commissions.Mr.Schrute sold 200 generators in June.If Mr.Schrute prepares a traditional income statement for the month of June,what would be his gross profit?

A) $234,000
B) $144,000
C) $90,000
D) $54,000