The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year:

Sales $350,000
Variable selling expense 35,000
Fixed selling expenses 25,000
Cost of goods sold (variable) 160,000
Fixed administrative expenses 55,000
Variable administrative expenses 15,000

The gross margin of Evans Retail Stores, Inc. for the first quarter is:
A) $210,000.
B) $140,000.
C) $220,000.
D) $190,000.

The contribution margin of Evans Retail Stores, Inc. for the first quarter is:
A) $300,000.
B) $140,000.
C) $210,000.
D) $190,000.

The total contribution margin decreases if sales volume remains the same and:
A) fixed expenses increase.
B) fixed expenses decrease.
C) variable expense per unit increases.
D) variable expense per unit decreases.