Spartan Systems reported total sales of $305,000, at a price of $25 and per unit variable expenses of $16, for the sales of their single product.

Total Per Unit Sales $305,000; per unit $25

Variable expenses 183,000; per unit16

Contribution margin 122,000 $9

Fixed expenses 101,000

Net operating income $21,000

What is the amount of contribution margin if sales volume increases by 20%?

$146,400

$16,800

$122,000

$25,200