The following data relate toABC Corporation for the year just ended:
Sales revenue: 750,000
Cost of goods sold:
Variable portion: 370,000
Fixed portion: 110,000
Variable selling and administrative: 50,000
Fixed selling and administrative: 75,000
Which of the following statements is correct?
A. ABC's variable-costing income statement would reveal a gross margin of $270,000
B. ABC's variable-costing income statement would reveal a contribution margin of $330,000
C. ABC's absorption-costing income statement would reveal a contribution margin of $330,000
D. ABC's absorption-costing income statement would reveal a gross margin of $330,000
E. ABC's absorption-costing income statement would reveal a gross margin of $145,000