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 Costs Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling Fixed selling and administrative Operating margin 3 ) $300 $40 (180) $120