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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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