Neon Company Manufactures Widgets

question 359

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 at Neon Company?

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

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Definitions:

Fixed Amounts

Predetermined quantities or sums that do not change over time or in response to varying conditions.

Trade by Bartering

A method of exchanging goods or services directly without using money.

Laissez-Faire

Laissez-faire is an economic philosophy advocating for minimal government intervention in the market, with transactions between private parties being free from tariffs, subsidies, and enforced monopolies.

Government Interference

Actions by the government that affect the market, often with the intention of correcting market failures or achieving a social objective.