The Following Data Relate to Lobo Corporation for the Year

Multiple Choice

The following data relate to Lobo Corporation for the year just ended: $\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 750,000 \\\hline \text { Cost of goods sold: } & \\\hline \text { Variable portion } & 370,000 \\\hline \text { Fixed portion } & 110,000 \\\hline \text { Variable selling and administrative cost } & 50.000 \\\hline \text { Fixed selling and administrative cost } & 75.000 \\\hline\end{array}$ Which of the following statements is correct?

A) Lobo's variable-costing income statement would reveal a gross margin of $270,000.
B) Lobo's variable costing income statement would reveal a contribution margin of $330,000.
C) Lobo's absorption-costing income statement would reveal a contribution margin of $330,000.
D) Lobo's absorption costing income statement would reveal a gross margin of $330,000.
E) Lobo's absorption-costing income statement would reveal a gross margin of $145,000