The Following Information Pertains to the East Division of Saturn

Multiple Choice

The following information pertains to the East Division of Saturn Company.: $\begin{array}{lr}\text { Net Sales } & \$ 21,000 \\\text { Variable costs: } & \\\text { Cost of merchandise sold } & 10,300 \\\text { Operating expenses } & 2,700 \\\text { Fixed costs: } & \\\text { Controllable by segment manager } & 2,400 \\\text { Controllable by others } & 1,000 \\\text { Unallocated costs } & 600\end{array}$ The contribution margin is_____.

A) $7,100
B) $7,700
C) $8,000
D) $8,700