It costs Homer's Manufacturing $0.75 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 $14,000 a month rent for his factory and store, and also pays $76,000 amonth 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. $77,550B. $493,500C. $571,050O D. $415,950

Answered: It costs Homer's Manufacturing $0.75 to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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