Q61
Single choice
Pontotoc industries manufactures a product that is used as a subcomponent by other manufacturers It has the following price and cost structure
During the next year, sales are expected to be 10.000 units all costs will remain the same except for fixed manufacturing overhead, which will increase 20%. and direct materials. which will increase 10%. The selling price per unit for next year will be $320. Based on this information, Pontotoc's contribution margin for next year will be