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 $ 1,040,000 $ 704,000 $ 128,000 $ 84,000 2 440,000 154,000 44,000 104,000 3 740,000 304,000 154,000 24,000 Multiple Choice 54.7% 20.0% 37.8% 32.0% 59.4%