Current business segment operations for Whitman, a mass retailer, are presented below.

Merchandise Automotive Restaurant Total Sales $500,000 $400,000 $100,000 $1,000,000 Variable costs 300,000 200,000 70,000 570,000 Fixed costs 100,000 100,000 50,000 250,000 Operating income (loss) $100,000 $100,000 $-20,000 $180,000

Management is contemplating the discontinuance of the Restaurant segment because "it is losing money." If this segment is discontinued, $30,000 of its fixed costs will be eliminated. In addition, Merchandise and Automotive sales will decrease 5% from their current levels. What will Whitman's total contribution margin be if the Restaurant segment is discontinued?

Select one: a. $220,000 b. $160,000 c. $367,650 d. $380,000