It costsHomer's Manufacturing $0.75 to produce baseballs and Homer sells them for $7 a piece. Homer pays a sales commission of5% of sales revenue to his sales staff. Homer also pays $16,000 a month rent for his factory andstore, and also pays $80,000 a month to his staff in addition to the commissions. Homer sold 68,500 baseballs in June. If Homer prepares a contribution margin income statement for the month ofJune, what would be his contributionmargin?

A.

$75,350

B.

$479,500

C.

$404,150

Your answer is correct.

D.

$554,850