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Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit

Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,000 units of Fluoro2211 are as follows.

Per Unit Data
Selling Price $ 150
Direct Materials 20
Direct Labor 15
Variable Manufacturing Overhead 12
Fixed Manufacturing Overhead 30
Variable Selling 3
Fixed Selling and Administrative 10
Total Costs 90
Operating Margin $ 60

During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be: (CMA adapted)

$882,000.

$980,000.

$972,000.

$1,080,000.

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