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almond37 [142]
3 years ago
11

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 $1,400 a month rent for his store, and also pays $3,000 a month to his staff in addition to the commissions. Stanley sold 200 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:
Rudik [331]3 years ago
3 0

Answer:

Stanley's Bicycles contribution margin is $7,500

Explanation:

<u>Stanley's Bicycles Contribution Margin Income Statement for the month of June</u>

Sales ($750 x 200)                                                       $150,000

Less Variable Costs :

Costs of Sales ($600 x 200)                  $120,000

Commissions ( $150,000 x 15 %)            $22,500    ($142,500)

Contribution                                                                     $7,500

Less Fixed Costs

Rent                                                             $1,400

Salaries                                                       $3,000       ($4,400)

Net Income                                                                       $3,100

Conclusion

Contribution Margin is Sales less Variable Costs. Therefore, Stanley's Bicycles contribution margin is $7,500

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SashulF [63]

Complete Question:

Determine the utilization and the efficiency for each of these situations:

a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per

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b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the

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Explanation:

It's not (true) actually. Whether the design capacity is comparatively (high), the utilisation could be (low) even though the efficiency was (high).

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Efficiency  = \frac{4}{5}

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