Frocks and Gowns Inc

Frocks and Gowns Inc. ,has two divisions,Day Wear and Night Wear.The Day Wear Division has an investment base of $750,000 and produces (and sells) 100,000 units of Collars at a market price of $10.00 per unit.Variable costs total $3.50 per unit,and fixed charges are $4.00 per unit (based on a capacity of 120,000 units) .The Night Wear Division wants to purchase 25,000 units of Collars from The Day Wear Division.However,the Night Wear Division is only willing to pay $6.75 per unit.What is the contribution margin for the Day Wear Division without the transfer to the Night Wear Division?

A) $250,000.
B) $650,000.
C) $675,000.
D) $1,000,000.