Reference: 22_07
Assume Rock Bottom Golf Is Divided into Four

Reference: 22_07
Assume Rock Bottom Golf is divided into four departments that operate as profit centers and that the data below is from the most recent fiscal year.
$\begin{array}{lrrrr}&\text { Golf Clubs}&\text { Golf Bags}&\text { Golf Balls }&\text { Golf Apparel }\\\text { Sales } & \$ 200,000 & \$ 400,000 & \$ 800,000 & \$ 1,600,000 \\\text { Cost of goods } & 90,000 & 220,000 & 400,000 & 960,000\\\text { Sold}\\\text { Direct expenses}\\\text { Salaries } & 18,000 & 54,000 & 90,000 & 226,000 \\\text { Insurance } & 2,000 & 3,000 & 6,000 & 120,000 \\\text { Utilities } & 1,000 & 2,000 & 3,000 & 10,000\end{array}$
-Given the information above,which of Rock Bottom Golf's departments has the highest contribution margin as a percent of sales?

A) Golf Clubs.
B) Golf Bags.
C) Golf Balls.
D) Golf Apparel.
E) None, this is not a calculation performed at the department level.