Neon Company Manufactures Widgets

question 224

Multiple Choice

Neon Company manufactures widgets. The following data is related to sales and production of the widgets for last year. Using variable costing, what is the operating income for last year?

• A)$143,000
• B)$31,300
• C)$69,300
• D)$107,300

---

Definitions:

Cash Dividend

A cash distribution given to shareholders from the company's earnings.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and stockholders' equity at a specific point in time.

Net Sales

The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Cost of Goods Sold

The specific expenses borne for the production of products a company sells, covering materials and workforce.