Stanley's Bicycles Store Buys Bicycles on Average for $600 and Sells

Multiple Choice

Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $750.He pays a sales commission of 15% of sales revenue to his sales staff.Stanley pays $1,400 a month rent for his store,and also pays $3,000 a month to his staff in addition to the commissions.Stanley sold 120 bicycles in June.If Stanley prepares a contribution margin income statement for the month of June,what would be his operating income?

A) $8,900
B) $90,000
C) $85,500
D) $100