Spartan Systems reported total sales of $500,000, at a price of $20 and per unit variable expenses of $13, for the sales of their single product.

	Total	Per Unit
Sales	$500,000	$20
Variable expenses	325,000	13
Contribution margin	175,000	$7
Fixed expenses	120,000
Net operating income	$55,000

What is the amount of contribution margin if sales volume increases by 30%? (Round your intermediate calculations to 2 decimal places and your final answer to the nearest whole number.)

$42,000

$227,500

$180,000

$78,000