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goblinko [34]
3 years ago
5

Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $750. He pays a sales commission of 15%

of sales revenue to his sales staff. Stanley pays $1900 a month rent for his store, and also pays $5000 a month to his staff in addition to the commissions. Stanley sold 110 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his contribution margin?
Business
1 answer:
Irina18 [472]3 years ago
4 0

Answer:

Contribution margin= $4,125

Unitary contribution margin = $37.5

Explanation:

Giving the following information:

Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $750. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1900 a month rent for his store and also pays $5000 a month to his staff in addition to the commissions. Stanley sold 110 bicycles in June.

Sales= 750*110= $82,500

Variable cost= [600 + (0.15*750)]*110= $78,375 (-)

Contribution margin= $4,125

Unitary contribution margin = 750 - 712.5= $37.5

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Answer:

$5,000 ; $2,550

Explanation:

The computation is shown below:

For net income in year 1

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4 years ago
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Explanation:

Data provided

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