The Following Information Pertains to the East Division of Saturn $\begin{array} { l } \text { NET SALES}&\$21,000 \\\end{array}$

Multiple Choice

The following information pertains to the East Division of Saturn Company:
$\begin{array} { l } \text { NET SALES}&\$21,000 \\\end{array}$

Variable costs:
$\begin{array} { l } \text { Cost of merchandise sold}& 10,300\\ \text {Operating expenses }&3,700 \\\end{array}$

Fixed costs:
$\begin{array} { l } \text {Controllable by segment manager }& 2,400\\ \text { Controllable by others}&1,000 \\ \text { unallocated costs}&600 \\\end{array}$

The contribution margin of the East Division is ________.

A) $7,000
B) $7,700
C) $8,000
D) $10,700