Stanley's Bicycles store buys bicycles on average for $650 and sells them on average for $770. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1400 a month rent for his store, and also pays $4000 a month to his staff in addition to the commissions. Stanley sold 150 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his contribution margin?
A)$675
B)$115,500
C)$98,175
D)$230,325

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The Answer of Stanley's Bicycles store buys bicycles on average for $650 and sells them on average for $770. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $1400 a month rent for his store, and also pays $4000 a month to his staff in addition to the commissions. Stanley sold 150 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his contribution margin?
A)$675
B)$115,500
C)$98,175
D)$230,325

Stanley's Bicycles Store Buys Bicycles on Average for $650 and Sells