Assume Sales of $10,000, Variable Costs of $7,000, and Fixed

Multiple Choice

Assume sales of $10,000, variable costs of $7,000, and fixed costs of $2,000.Calculate contribution margin and operating income.

A) Contribution margin = $3,000; Operating income = $1,000
B) Contribution margin = $5,000; Operating income =$1,000
C) Contribution margin = $8,000; Operating income = $1,000
D) Contribution margin = $6,000; Operating income = $1,000