Kator Inc.manufactures industrial components.One of its products used as a subcomponent in auto manufacturing is KB-96.The selling price and cost per unit data for 9,000 units of KB-96 is as follows. During the next year,sales of KB-96 are expected to be 10,000 units.All costs will remain the same except for fixed manufacturing overhead,which will increase 20%,and material,which will increase 10%.The selling price per unit for next year will be $160.Based on this data,Kator Inc.'s total contribution margin for next year will be: (CMA adapted)
A)$882,000
B)$980,000
C)$972,000
D)$1,080,000

Question

Quizplus · Accepted Answer

The Answer of Kator Inc.manufactures industrial components.One of its products used as a subcomponent in auto manufacturing is KB-96.The selling price and cost per unit data for 9,000 units of KB-96 is as follows. During the next year,sales of KB-96 are expected to be 10,000 units.All costs will remain the same except for fixed manufacturing overhead,which will increase 20%,and material,which will increase 10%.The selling price per unit for next year will be $160.Based on this data,Kator Inc.'s total contribution margin for next year will be: (CMA adapted)
A)$882,000
B)$980,000
C)$972,000
D)$1,080,000

Kator IncManufactures Industrial Components