This is an example of operating income using the absorption costing method:

Sales		$XXX
Variable cost of goods sold		($XXX)
Manufacturing margin		$XXX
Variable selling and administrative expenses		($XXX)
Contribution margin		$XXX
Fixed costs:
Fixed manufacturing costs	$XXX
Fixed selling and administrative expenses	$XXX
Total fixed costs		$XXX
Operating income		$XXX

Group of answer choices

True

False