Use the Following Information for Questions

question 60

Multiple Choice

Use the following information for questions.
Roosevelt Corporation has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Roosevelt are 40,000 Standard and 60,000 Supreme. Fixed expenses are $1,800,000.
-At the expected sales level, Roosevelt's net income will be

• A) $(300,000).
• B) $ - 0 -.
• C) $1,200,000.
• D) $3,000,000.

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Definitions:

Salaries

A fixed amount of money paid to employees for their services during a set time frame, often monthly or bi-weekly.

Interest

The cost of borrowing money or the return on investment for the lender or investor.

Original Capital

Original capital refers to the initial amount of money invested in a business or project, used to start operations and acquire necessary resources.

Interest

The cost of borrowing money, paid by the borrower to the lender, typically expressed as an annual percentage of the loan amount.