Question:
In the Heenemen Company, sales are $800,000, cost of goods under absorption costing is $600,000 and total operating expenses are $120,000. If cost of goods sold is 70% variable and total operating expenses are 60% fixed, what is the contribution margin under variable costing?
a. $380,000.
b. $332,000.
c. $308,000.
d. $260,000.