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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 9,170 units of Fluoro2211 are as follows.

Per Unit Data
Selling Price $ 490
Direct Materials 190
Direct Labor 32
Variable Manufacturing Overhead 29
Fixed Manufacturing Overhead 47
Variable Selling 20
Fixed Selling and Administrative 27
Total Costs 345
Operating Margin $ 145

During the next year, sales of Fluoro2211 are expected to be 10,170 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price per unit for next year will be $500. Based on these data, Razor Inc.'s total contribution margin for next year will be: (CMA adapted)

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