Stanley's Bicycles Store Buys Bicycles on Average for $610 and Sells

Multiple Choice

Stanley's Bicycles store buys bicycles on average for $610 and sells them on average for $780. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1500 a month rent for his store, and also pays $3000 a month to his staff in addition to the commissions. Stanley sold 140 bicycles in June. If Stanley prepares a traditional income statement for the month of June, what would be his operating income?

A) $109,200
B) $44,680
C) $2920
D) $23,800