Ajax manufacturing has the following cost structure: direct material $10, direct labor 20, variable manufacturing overhead $5, total variable manufacturing costs per unit $35, fixed manufacturing overhead per year $100,000, fixed selling and administrative expense per year $200,000.

Assume that Ajax produces 10,000 items and sells 8,000 items. The selling price of Ajax's product is $90 per unit. In this case the contribution margin on the income statement prepared using variable costing is: