40. A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (5,000 units):

Direct materials $70,000

Direct labor 20,000

Variable factory overhead 10,000

Fixed factory overhead 2,000 $102,000

Operating expenses:

Variable operating expenses $17,000

Fixed operating expenses $1,000 $18,000

If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement?

$54,000

not reported

$50,000

$70,000