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

Question 56

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 traditional income statement for the month of June,what would be his operating income?


A) $ 72,000
B) $ 48,200
C) $ 60,000
D) $160,000

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