Question: How do i solve this ? I keep getting 414,600 but it is not an option for answer It costs Homer's Manufacturing $0.55 to produce
How do i solve this ? I keep getting 414,600 but it is not an option for answer
It costs Homer's Manufacturing $0.55 to produce baseballs and Homer sells them for $7 a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $12,000 a month rent for his factory and store, and also pays $81,000 a month to his staff in addition to the commissions. Homer sold 70,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin? O A. $493,500 OB. $430,050 O C. $63,450 OD. $556,950
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