Wendell's Bicycles Store Buys Bicycles on Average for $500 and Sells

Multiple Choice

Wendell's Bicycles store buys bicycles on average for $500 and sells them on average for $800.He pays a sales commission of 10% of sales revenue to his sales staff.Wendell pays $1,500 a month rent for his store,and also pays $3,000 a month to his staff in addition to the commissions.Wendell sold 100 bicycles in June.
-If Wendell prepares a contribution margin income statement for the month of June,what would be his operating income?

A) $ 58,000
B) $ 26,500
C) $ 17,500
D) $ 80,000