The following information is available for Chap Company.

Sales

$350,000

Cost of goods sold

$120,000

Total fixed expenses

$60,000

Total variable expenses

$100,000

Which amount would you find on Chap’s CVP income statement?

(a) Contribution margin of $250,000.

(b) Contribution margin of $190,000.

(c) Gross profit of $230,000.

(d) Gross profit of $190,000.