It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8.00 a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $13,000 a month rent for his factory and store, and also pays $79,000 a month to his staff in addition to the commissions. Homer sold 72,500 baseballs in June. If Homer propares a contribution margin income statoment for the month of June, what would be his contribution margin?
It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8.00 a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $13,000 a month rent for his factory and store, and also pays $79,000 a month to his staff in addition to the commissions. Homer sold 72,500 baseballs in June. If Homer propares a contribution margin income statoment for the month of June, what would be his contribution margin?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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![It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8.00 a piece. Homer pays a sales commission of 5% of sales revenue to his
sales staff. Homer also pays $13,000 a month rent for his factory and store, and also pays $79,000 a month to his staff in addition to the commissions. Homer sold
72,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ff4e545-b652-42e1-91f3-fc586902a6d2%2F3c59f5c7-14fb-45ed-ae43-cafb17c05462%2Fp0oe0cs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:It costs Homer's Manufacturing $0.95 to produce baseballs and Homer sells them for $8.00 a piece. Homer pays a sales commission of 5% of sales revenue to his
sales staff. Homer also pays $13,000 a month rent for his factory and store, and also pays $79,000 a month to his staff in addition to the commissions. Homer sold
72,500 baseballs in June. If Homer prepares a contribution margin income statement for the month of June, what would be his contribution margin?
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