Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is: Dept. Sales Cost of Goods Sold Direct Expenses Indirect Expenses 1 $ 1,190,000 $ 719,000 $ 161,600 $ 99,000 2 590,000 169,000 59,000 119,000 3 890,000 319,000 169,000 39,000

26.0%

B)

38.4%

C)

61.6%

D)

66.8%

E)

40.0%