Assume a selling price of $25 per unit, variable cost per unit of $17, and total fixed cost of $1,000. If 450 units are sold, calculate the contribution margin and the operating income.
a. Contribution Margin: $4,050; Operating Income: $3,050
b. Contribution Margin: $5,850; Operating Income: $4,850
c. Contribution Margin: $8,550; Operating Income: $7,550
d. Contribution Margin: $7,250; Operating Income: $6,250