Kator IncManufactures Industrial Components

Multiple Choice

Kator Inc.manufactures industrial components.One of its products used as a subcomponent in auto manufacturing is KB-96.The selling price and cost per unit data for 9,000 units of KB-96 are as follows. During the next year,sales of KB-96 are expected to be 10,000 units.All costs will remain the same except for fixed manufacturing overhead,which will increase by 20%,and material,which will increase by 10%.The selling price per unit for next year will be $160.Based on these data,Kator Inc.'s total contribution margin for next year will be: (CMA adapted)

A) $882,000.
B) $980,000.
C) $972,000.
D) $1,080,000.