A company produces two kinds of hammers: one with longer handles and one with shorter handles. The longer hammer uses better materials and has a better design for back support. During the past year, 200,000 shorter hammers and 50,000 longer hammers were produced and sold. Fixed costs amount to $500,000. If the shorter hammers were dropped from production, $180,000 of the fixed costs would be avoided. If the longer hammers were dropped, $90,000 of the fixed costs would be avoided.

Shorter Longer

Variable expenses/unit $40 $86

Sales price/unit $44 $90

The contribution margin of the shorter and longer hammers, respectively is

a.	$200,000/$800,000	c.	$8000,000/$4,300,000
b.	$620,000/110,000	d.	$800,000/$200,000