Gyro Company manufactures Products T and W and is operating at full capacity. To manufacture Product W requires three times the number of machine hours required for Product T. Market research indicates that 1,000 additional units of Product W could be sold. The contribution margin by unit of product is as follows:
Product T Product W
Sales price $300 $325
Variable cost of goods sold 235 250
Manufacturing Margin $65 $75
Variable Selling & admin. exp. 25 10
Contribution Margin $40 $65
Calculate the increase or decrease in total contribution margin if 1,000 additional units of Product W are produced and sold.