Circuit City via Walmart offers the Dorel Home Products Dillan Futon in Gray, model no. 2017419, for $187.08 with free shipping. That's the lowest total price we could find by $14. It features a multi-position back, wood frame, microfiber upholstery, and a weight capacity of 600 lbs.
Of note: It's also available in White Faux Leather for the same price.