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Kator Co. is a manufacturer of industrial components. One of their products that is used as a sub-component in auto manufacturing is KB-96. This product has the following financial structure per unit.
During the next year, KB-96 sales are expected to be 10,000 units. All of the costs will remain the same except for fixed manufacturing overhead, which will increase by 20 percent and material, which will increase by 10 percent. The selling price per unit for next year will be $160. Based on these data, the contribution margin from KB-96 for next year will be:
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