Solved

Toby's Farm Store Buys Portable Generators for $500 and Sells

Question 251

Multiple Choice

Toby's Farm Store buys portable generators for $500 and sells them for $800.He pays a sales commission of 5% of sales revenue to his sales staff.Toby pays $2,000 a month rent for his store,and also pays $1,800 a month to his staff in addition to the commissions.Toby sold 200 generators in June.
-If Toby prepares a contribution margin income statement for the month of June,what would be his contribution margin?


A) $268,000
B) $160,000
C) $52,000
D) $108,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions