Schrute Farm Sales buys portable generators for $ 470 and sells them for $ 720 He pays a sales commission of 5% of sales revenue

Question

Schrute Farm Sales buys portable generators for $ 470 and sells them for $ 720 He pays a sales commission of​ 5% of sales revenue to his sales staff. Mr. Schrute pays $ 3 comma 000 a month rent for his​ store, and also pays $ 1 comma 700 a month to his staff in addition to the commissions. Mr. Schrute sold 700 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of​ June, what would be his operating​ income?

Lamar Hirthe · Accepted Answer

The contribution margin statement is found below with a contribution margin of $149,800 and operating income of $145100Explanation:Contribution Margin StatementSales  revenue ($720*700)              $504000 Variable costs:Cost of generators($470*700)         ($329000)Commission(5%*$504000)               ($25200)Contribution margin                           $149,800Fixed costs Rent                                                     ($3000)Additional commission                       ($1,700)Operating income                              $145100Cost of rent is fixed as it is not depended on the quantity of generators sold.Additional commission is fixed amount,so it is a fixed cost, while costs of buying generators  as well as the commission of 5% are both variable costs.

Lamar Hirthe · Answer

I’m not sure i’m actually really sorry

Lamar Hirthe · Answer

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.

Prof. Carmelo Hilpert

Schrute Farm Sales buys portable generators for $ 470 and sells them for $ 720 He pays a sales commission of 5% of sales revenue

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Prof. Carmelo Hilpert

Schrute Farm Sales buys portable generators for $ 470 and sells them for $ 720 He pays a sales commission of​ 5% of sales revenue

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Schrute Farm Sales buys portable generators for $ 470 and sells them for $ 720 He pays a sales commission of 5% of sales revenue