At a Sales Level of $300,000, James Company's Gross Margin

Multiple Choice

At a sales level of $300,000, James Company's gross margin is $15,000 less than its contribution margin, its net operating income is $50,000, and its selling and administrative expenses total $120,000. At this sales level, its contribution margin would be:

A) $250,000
B) $155,000
C) $170,000
D) $185,000