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:

Payments

The act of transferring money, or its equivalent, from one party to another as a settlement of an obligation, such as bills, invoices, or loans.

Compounded Monthly

This term refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated on a monthly basis.

Invest

To assign funds with the anticipation of obtaining future gains, like earnings or financial returns.

Saves

In finance, the amount of money that is set aside from income, typically in a savings account or other forms of secure investment.