Portable Power Inc. buys portable generators for $470 and sells them for $750. They pay a sales commission of 5% of sales revenue to their sales staff. Portable Power Inc. pays $6,000 a month rent for their store, and also pays $1,800 a month to their staff in addition to the commissions. Portable Power Inc. sold 600 generators in June. If Portable Power Inc prepares a contribution margin income statement for the month of June, what would be their operating income? O $304,500 O $137,700 O $450.000 O $153,300
Portable Power Inc. buys portable generators for $470 and sells them for $750. They pay a sales commission of 5% of sales revenue to their sales staff. Portable Power Inc. pays $6,000 a month rent for their store, and also pays $1,800 a month to their staff in addition to the commissions. Portable Power Inc. sold 600 generators in June. If Portable Power Inc prepares a contribution margin income statement for the month of June, what would be their operating income? O $304,500 O $137,700 O $450.000 O $153,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Portable Power Inc. buys portable generators for $470 and sells them for $750. They pay a sales
commission of 5% of sales revenue to their sales staff. Portable Power Inc. pays $6,000 a month rent
for their store, and also pays $1,800 a month to their staff in addition to the commissions. Portable
Power Inc. sold 600 generators in June. If Portable Power Inc prepares a contribution margin income
statement for the month of June, what would be their operating income?
O $304,500
O $137,700
O $450,000
O $153,300
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