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 9,170 units of Fluoro2211 are as follows. Selling Price Direct Materials. Direct Labor Variable Manufacturing Overhead. Fixed Manufacturing Overhead Variable Selling Fixed Selling and Administrative Total Costs Operating Margin Per Unit Data $ 490 190 32 29 47 20 27 345 $ 145 During the next year, sales of Fluoro2211 are expected to be 10,170 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

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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 9,170 units of Fluoro2211 are as follows.
Selling Price
Direct Materials
Direct Labor
Variable Manufacturing
Overhead
Fixed Manufacturing
Overhead
Variable Selling
Fixed Selling and
Administrative
Total Costs
Operating Margin
Per Unit
Data
$ 490
190
32
29
47
20
27
345
$ 145
During the next year, sales of Fluoro2211 are expected to be 10,170 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 $500. Based on these data, Razor Inc.'s total contribution margin for next year will be: (CMA
adapted)
Transcribed Image Text: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 9,170 units of Fluoro2211 are as follows. Selling Price Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Fixed Selling and Administrative Total Costs Operating Margin Per Unit Data $ 490 190 32 29 47 20 27 345 $ 145 During the next year, sales of Fluoro2211 are expected to be 10,170 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 $500. Based on these data, Razor Inc.'s total contribution margin for next year will be: (CMA adapted)
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