Amgen Inc., which began business at the start of the current year, had the following data:

Production: 20,000 units

Sales: 4,000 units at $50 per unit

Production costs:

Variable: $7 per unit

Fixed: $300,000

Selling and administrative costs:

Variable: $67,000

Fixed: $45,000

Beg. WIP: 0

End. WIP: 0

Beg. Finished goods: 0

End. Finished goods: 7,000 units

The contribution margin that the company would disclose on a variable-costing income statement is:

Select one:

a. $10,000.

b. $7,000.

c. $137,000.

d. $156,500.