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Question - 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 9,070 units of Fluoro2211 are as follows.
Per Unit Data
Selling Price $290
Direct Materials 90
Direct Labor 22
Variable Manufacturing Overhead 19
Fixed Manufacturing Overhead 37
Variable Selling 10
Fixed Selling and Administrative 17
Total Costs 195
Operating Margin $95
During the next year, sales of Fluoro2211 are expected to be 10,070 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 $300. Based on these data, determine the Razor Inc.'s total contribution margin for next year?
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