Based on a predicted level of production and sales of 20,000 units, a company anticipates total variable costs of $88,000, fixed costs of $32,000, and operating income of $140,800. Based on this information, the budgeted amount of contribution margin for 18,000 units would be: I know the answer is $155,520 but I'm not sure how they figured that out.

Multiple Choice

a. $88,000.

b. $32,000.

c. $172,800.

d. $234,720.

e. $155,520.