Question - Spartan Systems reported total sales of $490,000, at a price of $25 and per unit variable expenses of $18, for the sales of their single product.
Total Per Unit
Sales $490,000 $25
Variable expenses 352,800 18
Contribution margin 137,200 $7
Fixed expenses 119,000
Net operating income $18,200
What is the amount of contribution margin if sales volume increases by 20%?