First Robotics Company Sells Basic Kits to Build Robots for $112

question 16

Multiple Choice

First Robotics Company sells basic kits to build robots for $112 each.The variable costs for each kit are $72.The total contribution margin for 20 kits is:

• A)$ 2,240.
• B)$ 3,680.
• C)$ 1,440.
• D)$ 800.

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Definitions:

Recording Process

The systematic method of capturing all financial transactions of a company to ensure accurate financial reporting and analysis.

Chronological Record

Documentation or recording of events in the order of their occurrence over time.

Transaction

A financial event that changes the value or composition of a company's assets, liabilities, or equity.

Journal

A chronological record of all financial transactions, used to transfer information to a company's general ledger.