Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto...
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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 data for 9,070 units of Fluoro2211 are as follows.
During the next year, sales of Fluoro2211 are expected to be 10,070 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 $300. Based on these data, Razor Inc.'s total contribution margin for next year will be: (CMA adapted)
