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ABC Companys total sales volume is $10 million, with a cost of goods sold equal to 50% of sales, and total indirect expenses of $2

ABC Companys total sales volume is $10 million, with a cost of goods sold equal to 50% of sales, and total indirect expenses of $2 million. The Eastern territory has sales volume that equals $1 million and direct expenses of $200,000. In a marketing cost analysis, the contribution margin of the Eastern territory is:

A.

zero (no profit)

B.

$800,000

C.

$300,000

D.

$100,000

E.

$500,000

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