A business operated at 100% of capacity during its first month, with the following results: Sales (112 units) $560,000 Production costs (140 units): Direct materials $70,000 Direct labor 17,500 Variable factory overhead 31,500 Fixed factory overhead 28,000 147,000 Operating expenses: Variable operating expenses $5,620 Fixed operating expenses 4,160 9,780 The amount of contribution margin that would be reported on the variable costing income statement is Oa. $559,860 Ob. $455,020 Oc. $459,180 Od. $550,220 Accountants prefer the variable costing method over the absorption costing method for evaluating the performance of a company because Oa, by using the variable costing method, the cost of goods sold will be higher as more units are manufactured and sales remain the same. Ob. by using the variable costing method, all fixed and variable costs are included in the unit cost of the product manufactured. Oc by using the absorption costing method, income could appear to be lower by producing more inventory. d. by using the absorption costing method, income could appear to be higher by producing more inventory. Philadelphia Company has the following information for March: Sales $481,839 Variable cost of goods sold 214,378 Fixed manufacturing costs 79,605 Variable selling and administrative expenses 51,241 Fixed selling and administrating expenses 36,608 Determine the March: 187,856 a. Manufacturing margin b. Contribution margin c. Operating income for Philadelphia Company 216,220 100,007 Contribution margin Fixed costs Manufacturing margin Operating income Sales Variable cost of goods sold Variable selling and administrative expenses a. Arrange these captions in the proper order in accordance with the variable costing concept. Sales Variable cost of goods sold Manufacturing margin Variable selling and administrative expenses Contribution margin Fixed costs Operating income b. Which of the captions represents: 1. The difference between sales and the total of all the variable costs and expenses. Contribution margin 2. The remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income? Contribution margin Tony's Company has the following information for March: Sales $1,000,000 Variable cost of goods sold 490,000 Fixed manufacturing costs 170,000 Variable selling and administrative expenses 112,000 Fixed selling and administrative expenses 100,000 510,000 Determine the March: a. Manufacturing margin for Tony's Company b. Contribution margin for Tony's Company C. Operating income for Tony's Company $ 398,000 $ 128,000