Callaway Corp., which began business at the start of the current year, had the following data:

Planned and actual production: 53,000 units

Sales: 58,000 units at $17 per unit

Production costs:

Variable: $4 per unit

Fixed: $318,000

Selling and administrative costs:

Variable: $2 per unit

Fixed: $46,000

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

Choose One:

• $638,000.
• $53,000.
• $0.
• None of the answers is correct.
• $335,500.

Please help me understand the answer to this question and what the answer is above. Thanks!