Baywater Tubing, Inc., allocates corporate indirect costs on the basis of revenue. Its PVC tubing division had revenues of $2,560,000 and a contribution margin of 40% of sales. If the traceable fixed costs were $270,000 and corporate allocated overhead costs were $500,000, what was PVC divisions controllable margin?

A :

$754,000

B :

$1,115,421

C :

$603,421

D :

$1,266,000