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It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $4.00 a piece. Ho

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It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $4.00 a piece. Ho

It costs Homer's Manufacturing $0.75 to produce baseballs and Homer sells them for $4.00 a piece. Homer pays a sales commission of 5% of sales revenue to his sales staff. Homer also pays $12,000 a month rent for his factory and store, and also pays $75,000 a month to his staff in addition to the commissions. Homer sold 67,500 baseballs in June. If Homer prepares a traditional income statement for the month of June, what would be his operating income?
A) $118,875
B) $219,375
C) $270,000
D) $319,875

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Managerial Accounting

Edition: 4^th

Author: Braun

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