Controllable margin for the fiction publishing division of Hall and Small Books was based on $2,500,000 variable selling and administrative cost, $1,200,000 traceable fixed cost, and $1,750,000 in indirect cost allocation. If sales next year increase by ten percent, the controllable margin for fiction book publishing

A :

cannot be determined.

B :

will increase by $175,000.

C :

will decrease by $250,000.

D :

will increase by ten percent of this years contribution margin over the year.