Business
Business, 18.02.2020 20:56, donterriuscollier

Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,200 units of Fluoro2211 are as follows. Top of Form Per Unit DataSelling Price $150Direct Materials 20Direct Labor 15Variable Manufacturing Overhead 12Fixed Manufacturing Overhead 30Variable Selling 3Fixed Selling and Administrative 10Total Costs 90Operating Margin $60During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be:.a) $882,000.b) $980,000.c) $972,000.d) $1,080,000.

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