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Jeffry Corp manufactures sporting goods. It costs $0.75 to produce baseballs and Jeffry sells them for...

Jeffry Corp manufactures sporting goods. It costs $0.75 to produce baseballs and Jeffry sells them for $4.00 apiece. Jeffry pays a sales commission of 5% of sales revenue to his sales staff. Jeffry also pays $12,000 a month rent for his sales store, and also pays $75,000 a month to his staff in addition to the commissions. Jeffry sold 67,500 baseballs in June.

If Jeffry prepares a contribution margin income statement for the month of June, what would be his contribution margin?

$205,875

$270,000

$64,125

$334,125
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