Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be

40,000

units at

$8.00?/unit.

Below is a listing of estimated expenses.

Category	Total Annual Expenses	?% of Annual Expense that are Fixed
Materials	$70,000	10?%
Labor	$30,000	10?%
Overhead	$90,000	20?%
?Marketing/Admin	$50,000	40?%

A Canadian firm was contracted to sell the product and will receive a commission of

10?%

of the sales price. No U.S. home office expenses will be allocated to the new facility.

The contribution margin ratio for Garfield Corporation is

A.142.86%

B.85.71%

C.60%

D.30%