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Question - A business operated 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 20,000
Variable factory overhead 2,000
Fixed factory overhead 7,000
69,000
Operating expenses:
Variable operating expenses $8,000
Fixed operating expenses 1,000
9,000
Required - What is the amount of the income from operations that would be reported on the variable costing income statement?
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