Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below:

By how much would the total contribution margin decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units?

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Total Shipping Expense Units Shipped Month January... February. $2,200 $3,100 4 4 $2,600 $1,500 $2,200 March.... April.. May June $3,000 $3,600 July.... 8.