Stanley's Bicycles Store Buys Bicycles on Average for $650 and Sells

Multiple Choice

Stanley's Bicycles store buys bicycles on average for $650 and sells them on average for $770. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1400 a month rent for his store, and also pays $4000 a month to his staff in addition to the commissions. Stanley sold 150 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his contribution margin?

A) $675
B) $115,500
C) $98,175
D) $230,325