JAGUAR Industries manufactures a product that is used as a subcomponent by other manufacturers. It has the following price and cost structure: Q: During the next year, sales are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase 20%, and direct materials, which will increase 10%. The selling price per unit for next year will be $320. Based on this information, Pontotoc's contribution margin for next year will be

Selling price $300 Costs Direct materials $40 Direct labor 30 Variable manufacturing overhead 24 Fixed manufacturing overhead 60 Variable selling 6 Fixed selling and administrative 20 (180) Operating margin $120