ABC Company has the following data regarding one of its products, which currently sells 10,000 units annually

Per Unit Price $10

Direct materials $4

Direct labor $2

Variable overhead $1

If per-unit direct materials cost increases by 25%, what will be ABS's new total contribution margin? A. $(30,000) B. $20,000 C. $30,000 D. $40,00

If volume of sales is reduced by 10%, what will be ABC's new total contribution margin? A. $20,000 B. $27,000 C. $30,000 D. $33,000