Gasson Company is a merchandising firm. Next month, the company expects to sell 800 units. The following data describe the company's revenue and cost structure:

Selling price per unit	$40
Sales commission	5%
Purchase price (cost) per unit	$18
Advertising expense	$4,000 per month
Administrative expense	$4,500 per month plus 15% of sales

Assume that all activity mentioned in this problem is within the relevant range.

What is the expected contribution margin next month?

Question 7 options:

	$14,400.
	$17,600.
	$16,000.
	$11,200.