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Point 1 : AJ Manufacturing Company incurred $53,000 of fixed product cost and $42,400 of variable product cost during its first year of operation. Also during its first year, AJ incurred $16,900 of fixed and $13,600 of variable selling and administrative costs. The company sold all of the units it produced for $172,000.
Required
Question A. an income statement using the format required by generally accepted accounting Principles (GAAP).
Question B. an income statement using the contribution margin approach.
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