A business operated at 100% of capacity during its first month and incurred the following costs: If
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If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month. What is the amount of the manufacturing margin that would be reported on the absorption costing income statement?
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Production costs (5,000 units): $70,000 Direct materials Direct labor 20,000 Variable factory overhead 10,000 $102,000 Fixed factory overhead 2,000 Operating expenses: Variable operating expenses $17,000 Fixed operating expenses 1,000 18,000
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