ABC Company makes and sells two types of shoes, Classic-A and Classic-B. Data concerning these products are as follows:

Classic-A Classic-B

Unit selling price $35 $20

Variable cost per unit $24.5 $12

Break-even point in units= 5,000 units, annual fixed cost is $100,000, total number of units (including Classic-A and Classic-B) is 100. The total contribution margin is:

Select one:

a. $4,000

b. $1,000

c. $2,000

d. $10,000

e. $3,000