Orion Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $23 Variable costs per unit: Direct material $4 Direct manufacturing labor $1.70 Manufacturing overhead $0.40 Selling costs $2 Annual fixed costs $100,000 The company sells 12,000 units at the end of the year. If direct labor and direct material costs increase by $1 each, contribution margin ________.

Question 4 options:

	decreases by $12,000
	increases by $12,000
	decreases by $24,000
	increases by $24,000