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

The amount of contribution margin that would be reported on the variable costing income statement is

a.$34,200

b.$29,700

c.$20,200

d.$26,200