ABC Inc. manufactures and sells toys. Price and cost data are as follows: $26.50 Selling price per unit (package of 2 CDs)............ Variable costs per unit: Direct material...... Direct labor........... Artist's royalties........ Manufacturing overhead.... Selling expenses......... Total variable costs per unit.. Annual fixed costs: Manufacturing overhead.... Selling and administrative... Total fixed costs............... Forecasted annual sales volume (120,000 units). $6.00 $5.00 $4.50 $3.00 $1.30 $19.80 $175,000 $250,000 $425,000 $3,180,000 What is ABC Inc.'s contribution margin (CM)? Select one: a. 804,000 O b. 540,000 c. 708,000 O d. 600,000