In Its First Year of Operations, a Company Has Sales

Multiple Choice

In its first year of operations, a company has sales of $162,000, ending finished goods inventory of $9,000, variable manufacturing costs of $55,000, and fixed manufacturing costs of $32,000 for the year. The company pays 12% commission to its sales force and has fixed selling and administrative expenses of $25,000 annually. The company has no other variable expenses.
Assuming the company uses direct costing, the contribution margin for the year is

A) $96,560.
B) $87,560.
C) $71,560.
D) $107,000.