4) Wendell Company has the following information available for the past quarter:

Division A Division B Division C

Sales $250,000 $400,000 $350,000

Variable expenses 52% 30% 40%

Fixed expenses controllable by division manager $60,000 $200,000 $175,000

Fixed expenses controllable by others $10,000 $5,000 $7,500

Unallocated expenses for all three divisions are $25,000. What is the contribution by Division C?

A) $2,500

B) $27,500 this is the right answer. please explain why

C) $35,000

D) $210,000