Absorption versus Variable Costing (raNT) A business operates at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production costs (100 units): Direct materials $40,000 Direct labor Variable factory overhead 20,000 2,000 Fixed factory overhead 7.000 69,000 Operating expenses: Variable operating expenses $ 8,000 1,000 Fixed operating expenses 9,000 What is the amount of the contribution margin that would be reported on the variable costing income statement e. $34,200 f. $20,200 g. $29,700 h. $26,200 What is the amount of the income from operations that would be reported on the variable costing income statement? a. $18,900 b. $18,200 c. $18,000 d. $21,000 What is the amount of the income from operations that would be reported on the absorption costing income statement? e. $21,000 f. $18,900 g. $18,200 h. $27,900