Schrute Farm Sales Buys Portable Generators for $470 and Sells

Multiple Choice

Schrute Farm Sales buys portable generators for $470 and sells them for $750 He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $6000 a month rent for his store, and also pays $1800 a month to his staff in addition to the commissions. Mr. Schrute sold 600 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his operating income?

A) $304,500
B) $153,300
C) $450,000
D) $137,700