During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000.
- If variable production costs were $100,000, a variable costing income statement would report the variable manufacturing costs as a:
A) $85,000 deduction from sales revenue to obtain contribution margin.
B) $85,000 deduction from sales revenue to obtain gross profit.
C) $100,000 deduction from sales revenue to obtain contribution margin.
D) $100,000 deduction from sales revenue to obtain gross profit.

Question

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The Answer of During the current period, 20,000 units were produced and 17,000 units were sold. Fixed manufacturing costs incurred amounted to $40,000.
- If variable production costs were $100,000, a variable costing income statement would report the variable manufacturing costs as a:
A) $85,000 deduction from sales revenue to obtain contribution margin.
B) $85,000 deduction from sales revenue to obtain gross profit.
C) $100,000 deduction from sales revenue to obtain contribution margin.
D) $100,000 deduction from sales revenue to obtain gross profit.

During the Current Period, 20,000 Units Were Produced and 17,000