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

Multiple Choice

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.