?Stanley's Candies is considering building a new plant in Europe. It predicts sales at the new plant to be? 40,000 units at? $4.00/unit. Below is a listing of estimated expenses.

Category	Total Annual Expenses	?% of Annual Expense that are Fixed
Materials	?$20,000	?10%
Labor	?$30,000	?20%
Overhead	?$50,000	?40%
?Marketing/Admin	?$10,000	?60%

A European 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? Stanley's Candies is......

A. ?157.50%.

B. 52.50%.

C. 42.50%.

D. ?57.50%.