Skip to main content
A

Anonymous

Dec 05, 2024

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

Schrute Farm Sales purchases portable generators for $470 each and sells them for $720 each. He pays a sales commission of 5% of the sales revenue to his sales staff. Additionally, Mr. Schrute incurs $3,000 per month in store rent and $1,700 per month in fixed salaries for his staff, excluding commissions. In June, Mr. Schrute sold 700 generators. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would his operating income be?

0
Save

3 Answers

A
Anonymous

Feb 21, 2025

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.
0
A
Anonymous

Feb 18, 2025

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.
0

Want to answer this question?

Join our community to share your knowledge!

Log in Sign up

Categories

Mathematics Entrepreneurship Banking

Tags

Business Mathematics finance

Related Questions

3
Find the circumference of p. leave your answer in terms of pi. the radious is 5 in.

Find the circumference of a circle with a radius of 5 inches. Please express your answer in terms of pi.

3
how tall is 77 inches in feet?

How tall is 77 inches when converted to feet?

3
In circle O, ST is a diameter. What must be the value of x?

In circle O, ST is a diameter. What is the value of x if (2x + 8) equals one of the following options: 22.0, 25.0, 25.4,...

4
2 log2 2 + 2 log2 6 – log2 3x = 3 .. the base is 2?

I have the following mathematical expression: 2 log₂(2) + 2 log₂(6) - log₂(3x) = 3. Is the base indeed 2? I would appr...

2
a question regarding torque in a magnetism setting?

I have a question regarding torque in a magnetism context. I understand that the equation τ = IABsin(θ) will be relevant...

8
Does Wells Fargo Bank open on Sundays?

Does Wells Fargo Bank open on Sundays in Bakersfield, California, specifically at the intersection of White Lane and Gos...

2
Find the cube roots of 8(cos 216° + i sin 216°).

Could you please help me find the cube roots of the complex number represented in polar form as 8(cos 216° + i sin 216°)...

1
Present and future values for different interest rates find the following values. compounding/discounting occurs annually. round your

Please find below the present and future values for different interest rates. Compounding and discounting occur annually...

5
What is a bank account nickname?

I’m trying to make my car payment online, and it’s asking for a bank account nickname. What does that mean, and what sho...

3
Why do all shareholders agree on the same goal for the financial​ manager? ?

What is the reason that all shareholders tend to agree on a common goal for the financial manager?