1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kirza4 [7]
3 years ago
11

Schrute Farm Sales buys portable generators for and sells them for He pays a sales commission of​ 5% of sales revenue to his sal

es staff. Mr. Schrute pays a month rent for his​ store, and also pays a month to his staff in addition to the commissions. Mr. Schrute sold generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of​ June, what would be his operating​ income?

Business
1 answer:
Maksim231197 [3]3 years ago
5 0

Complete question :

Schrute Farm Sales buys portable generators for $470 and sells them for $740. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $5,000 a month rent for his store, and also pays $2,200 a month to his staff in addition to the commissions. Mr. Schrute sold 600 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin? O A $444,000 O B. $139,800 O C. $748.200 D. $304 200

Answer:

139,800

Explanation:

Total Revenue = (quantity sold * price) = (600 * $740) = $444,000

Purchase cost = (purchase price * quantity) = (470 * 600) = $282,000

Variable selling cost = 5% of total revenue = (0.05 * 444,000) = $22,200

Total variable cost = (cost of purchase + variable selling price) = $(282,000 + 22,200) = $304,200

Contribution margin = (revenue - variable cost) = (444,000 - 304,000) = $139,800

Therefore, CONTRIBUTION MARGIN = $139,800

You might be interested in
The activity concerned with the production of goods and services is called​
kifflom [539]
Answer: Labor
Explanation: Human Resources (labor) The quantity and quality of human effort directed toward producing goods and services (also called labor).
8 0
2 years ago
Which answer is not a cost to the investor that is included in the calculation of an investment's interest rate
jeyben [28]

Answer:

Risk of a bad investment

Explanation:

When an investor is calculating an investment's interest rate, he/she must include all brokerage commissions and fees , inflation rate (interest rate must exceed the inflation rate) and the investor's opportunity cost.

Investors are risk adverse, which means that a risky investment should yield a higher return. That could be considered a rational investment rule, but it is not included in the calculation of the interest rate.

4 0
2 years ago
Beaver Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distributi
loris [4]

Answer:

Beaver's total taxable income and federal income text paid as result of distribution is $500,000 and $105,000 respectively.

Explanation:

The computation of the taxable income and the federal income is shown below:

Taxable income = Taxable income + loss

                           = $500,000 + $0

                           = $500,000

Since the fair value is $20,000 is less than the mortgage on land i.e $25,000 so it would be a loss of $5,000 which would not be considered so we put the value zero.

And, the federal income equal to

= Taxable income × income tax rate

= $500,000 × 21%

= $105,000

4 0
3 years ago
When you receive an assignment to write a report, you should begin the report-writing process by
Alika [10]
B) begin your research
3 0
3 years ago
Growth tutorial: plato <br><br>how might the lack of this aspect of infrastructure affect health​
Alenkasestr [34]

Answer:

how might the lack of this aspect of infrastructure affect health​?

Infrastructure on its own is one way of development, ways at which lack of it will affect health include;

it will deter the link between rural areas and the urban area

lack of infrastructure will help to increase the chances of breeding parasites which affects health

lack of infrastructure also affects personal hygiene as lack of water and other basic amenities affects health greatly.

Explanation:

6 0
3 years ago
Read 2 more answers
Other questions:
  • If jasmine sleeps for 12 hours each night and takes two naps during the day, jasmine is most likely:
    7·1 answer
  • The Principal assets of commercial banks are:
    8·2 answers
  • You are on your way to meet with your manager about changing your work schedule, when you see a spill on the floor. what would y
    5·1 answer
  • Which of the following is an example of an enterprising career?
    12·1 answer
  • 3)You have won a contest and are allowed to choose between two prizes. One option is to receive$200 today and another $200 one y
    9·1 answer
  • Consider the three theories of the upward slope of the short-run aggregate-supply curve. According to the sticky-wage theory, th
    8·1 answer
  • Working with people sometimes requires special techniques – what are some for graphic designer job?
    11·1 answer
  • In late December you​ decide, for tax​ purposes, to sell a losing position that you hold in​ Twitter, which is listed on t
    12·1 answer
  • Which statement would be MOST important to include in a summary of the section "Karl Marx"? Marx theorized that capitalists woul
    5·1 answer
  • kenny is considering creating a testamentary trust. which of the following is not a feature of a testamentary trust? a.creation
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!