Q. HR Company prepared the following absorption-costing income statement for the year ended May 31, 2014. Sales (8,000 units) Cost of goods sold Gross margin Selling and administrative expenses Operating income $160,000 108,000 $52,000 23,000 $ 29,000 Additional information follows: Selling and administrative expenses include $1.50 of variable cost per unit sold. There was no beginning inventory, and 8,750 units were produced. Variable manufacturing costs were $11 per unit. Actual fixed costs were equal to budgeted fixed costs. What is contribution margin using variable costing