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A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production costs (100 units): Direct materials
A business operated at 100% of capacity during its first month, with the following results:
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 | 69,000 |
Operating expenses: | ||
Variable operating expenses | $ 8,000 | |
Fixed operating expenses | 1,000 | 9,000 |
What is the amount of the contribution margin that would be reported on the variable costing income statement?
$26,200
$20,200
$34,200
$29,700
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