On the variable costing income statement, variable selling and administrative expenses are deducted from manufacturing margin to yield contribution margin.

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On the variable costing income statement, variable selling and administrative expenses are indeed deducted from the manufacturing margin (also known as the contribution margin from manufacturing operations) to arrive at the total contribution margin. This approach aligns costs with their behavior (variable vs. fixed), facilitating better decision-making.

On the Variable Costing Income Statement, Variable Selling and Administrative