Neon Company Manufactures Widgets

question 40

Multiple Choice

Neon Company manufactures widgets.The following data is related to sales and production of the widgets for last year.

Using absorption costing,what is operating income for last year?

• A)$39,300
• B)$66,300
• C)$219,700
• D)$143,000

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Definitions:

Standard Transmission

A type of vehicle transmission that requires manual shifting of gears by the driver.

Automatic Transmission

A type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from manual shifting.

Starter Motor Circuit

A system in a vehicle that initiates the engine's operation by engaging the electric starter motor with the engine's flywheel.

Current Draw

The amount of electrical current consumed by an electrical device while in operation, measured in amperes.