Figure 4-1

Figure 4-1. Foster Company makes power tools.The budgeted sales are $420,000,budgeted variable costs are $147,000,and budgeted fixed costs are $227,500.
Refer to Figure 4-1.What is the contribution margin?

A) $90,000
B) $183,000
C) $36,000
D) $273,000
E) $374,500