The Following Information Is Provided for Southall Company What Is This Company's Contribution Margin?
A) $30,000
B) $17,500

Multiple Choice

The following information is provided for Southall Company: $\begin{array}{lr}\text { Sales revenue } & \$ 125,000 \\\text { Variable manufacturing costs } & 42,500 \\\text { Fixed manufacturing costs } & 37,500 \\\text { Variable selling and administrative costs } & 15,000 \\\text { Fixed selling and administrative costs } & 12,500\end{array}$ What is this company's contribution margin?

A) $30,000
B) $17,500
C) $45,000
D) $67,500