Stanley's Bicycles store buys bicycles on average for $600 and sells them on average for $750.He pays a sales commission of 15% of sales revenue to his sales staff.Stanley pays $1,400 a month rent for his store,and also pays $3,000 a month to his staff in addition to the commissions.Stanley sold 120 bicycles in June.If Stanley prepares a traditional income statement for the month of June,what would be his gross profit?
A)$162,000
B)$18,000
C)$72,000
D)$90,000

Question

Quizplus · Accepted Answer

B)
Revenue $750 × 120 = $90,000
Less: Cost of Goods Sold $600 × 120 = 72,000
Gross Profit 18,000

Stanley's Bicycles Store Buys Bicycles on Average for $600 and Sells