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