Stanleys bicycles store buys bicycles on average for

This preview shows page 7 - 8 out of 8 pages.

16. Stanley's Bicycles store buys bicycles on average for $ 610 and sells them on average for $ 790. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $ 1,500 a month rent for his store, and also pays $ 5, 000 a month to his staff in addition to the commissions. Stanley sold 140 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his operating income? a. $110,600 b. $2,110 c. $10,250 d. $101,990 17. Stanley's Bicycles store buys bicycles on average for $ 610 and sells them on average for $ 790. He pays a sales commission of 15% of sales revenue to his sales staff. Stanley pays $ 1,900 a month rent for his store, and also pays $ 3,000 a month to his staff in addition to the commissions. Stanley sold 140 bicycles in June. If Stanley prepares a contribution margin income statement for the month of June, what would be his operating income? 18. Total variable costs change in direct proportion to changes in volume.
Image of page 7

Subscribe to view the full document.

19. Using account analysis, what type of cost is an electric bill that charges a flat monthly fee plus a charge for each kilowatt hour of electricity used? 20. The high-low method uses only two of the historical data points to estimate a cost equation. a. True b. False 21. When preparing a scatterplot, how should the data be graphed? 22. The data points with the ________ should be selected for use in calculating the variable cost per unit and the total fixed costs when using the high-low method.
Image of page 8
  • Fall '15
  • accurate product costs

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern