Neon Company Manufactures Widgets

question 96

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 contribution margin for last year?

• A)$216,700
• B)$68,200
• C)$143,000
• D)$69,300

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Definitions:

Sealed-Bid

A method of auction or tendering process where all bidders simultaneously submit their bids in secret, to be opened at a predetermined time.

Lemons

A term used in economics to describe a product of lower quality that is hard to distinguish from higher quality products before purchase.

Expected Value

The mean of all potential outcomes of a random variable, adjusted according to their individual probabilities of occurrence.

Dipstick

A tool used for measuring the quantity of a liquid in a tank or container, commonly used for checking oil levels in engines.