Nadal Company Currently Produces and Sells 20,000 Cans of Tennis

Multiple Choice

Nadal Company currently produces and sells 20,000 cans of tennis balls at a selling price of $10 each. The product has variable costs of $4 per unit and fixed costs of $50,000. The company currently earns a total contribution margin of:

A) $50,000.
B) $70,000.
C) $120,000.
D) $200,000.