Based on a predicted level of production and sales of 30,000 units, a company anticipates total variable costs of $120,000, fixed costs of $42,000, and operating income of $216,000. Based on this information, the budgeted amount of contribution margin for 27,000 units would be:

Multiple Choice

• $258,000.

• $42,000.

• $232,200.

• $340,200.

• $120,000.