10.

Spartan Systems reported total sales of $390,000, at a price of $60 and per unit variable expenses of $33, for the sales of their single product.

	Total	Per Unit
Sales	$390,000	$60
Variable expenses	214,500	33
Contribution margin	175,500	$27
Fixed expenses	118,000
Net operating income	$57,500

What is the amount of contribution margin if sales volume increases by 40%?

a) $175,500

b) $80,500

c) $245,700

d) $34,500