Pepper’s Automotive produces auto parts for various automotive retailers. Pepper’s is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,000,000, variable costs are $300,000, and fixed costs are $400,000. Of the fixed costs, controllable fixed costs are $100,000 and noncontrollable fixed costs are $300,000. What are the controllable margin and total contribution by profit center (CPC), respectively?

a. Controllable margin: $600,000; CPC: $400,000

b. Controllable margin: $700,000; CPC: $300,000

c. Controllable margin: $700,000; CPC: $100,000

d. Controllable margin: $600,000; CPC: $300,000