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A business operated at 1 0 0 % of capacity during its first month, with the following results: Line Item Description Amount Amount Sales (

A business operated at 100% of capacity during its first month, with the following results:
Line Item Description Amount Amount
Sales (90 units) $90,000
Production costs (100 units):
Direct materials $40,000
Direct labor 20,000
Variable factory overhead 2,000
Fixed factory overhead 7,000
Total production costs 69,000
Operating expenses:
Variable operating expenses $8,000
Fixed operating expenses 1,000
Total operating expenses 69,000
The amount of contribution margin that would be reported on the variable costing income statement is
a. $20,200
b. $34,200
c. $26,200
d. $29,700

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