In Its First Year of Operations, a Company Has Sales

Multiple Choice

In its first year of operations, a company has sales of $110,000, ending finished goods inventory of $12,000, variable manufacturing costs of $48,000, and fixed manufacturing costs of $30,000 for the year. Assuming the company uses direct costing, the manufacturing margin for the year is

A) $62,000.
B) $74,000.
C) $50,000.
D) $80,000.