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6) Mexico Company has the following data about its only product: Revenue $800,000 Direct materials used $200,000 Direct labor 80,000 Indirect manufacturingfixed 100,000 Selling and

6) Mexico Company has the following data about its only product:

Revenue $800,000

Direct materials used $200,000

Direct labor 80,000

Indirect manufacturingfixed 100,000

Selling and administrativefixed 150,000

Indirect manufacturingvariable 20,000

Selling and administrativevariable 60,000

Mexico Company uses the contribution approach. What is the contribution margin? calculate the operating income using contribution and absorption methods

A) $390,000

B) $350,000

C) $440,000

D) $500,000

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