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

Question

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

Quizplus · Accepted Answer

D)Sales $130 × 1100 $143,000
Less Variable Mfg cost 1100 × $62 68,200
Less Variable Selling expense 1100 × $5 = 5,500
Contribution Margin $69,300

Neon Company Manufactures Widgets