Oradell Company sells its single product at a price of $60 per unit and incurs the following variable costs per unit of product:
Direct material 16
Direct labor 12
Manufacturing overhead 7
Variable manufacturing costs 35
Selling expenses 5
Total variable costs 40
Oradell’s annual fixed costs are $880,000, and Oradell is subject to a 30% income tax rate. If prime costs increased by 20% and all other values remained the same, Oradell Company’s contribution margin (to the nearest whole percent) is