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Bear Publishing sells a nature guide. The following information was reported for a typical month: Sales Total $ 17,600 Per Unit $ 16.00 Variable expenses

Bear Publishing sells a nature guide. The following information was reported for a typical month:

Sales Total $ 17,600 Per Unit $ 16.00

Variable expenses 9,680 Per unit 8.80

Contribution margin 7,920 per unit 7.20

Bear is expecting a 20% increase in variable expenses. No other changes are expected or planned. How much contribution margin should bear expect after the increase?

Fixed expenses 3,600

Net operating income $ 4,320

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