O'Dell Sells Three Products: R, S, and T The Company's Weighted-Average Unit Contribution Margin Is:
A)$3

question 65

Multiple Choice

O'Dell sells three products: R, S, and T. Budgeted information for the upcoming accounting period follows: $\begin{array}{|c|c|r|r|r|}\hline \text { Product } & \text { Sales Volume (Units) } & {\text { Selling Price }} & \text { Variable Cost } \\\hline \mathrm{R} & 16,000 & \$ 14 & \$ 9 \\\hline \mathrm{S} & 12,000 & 10 & 6 \\\hline \mathrm{T} & 52,000 & 11 & 8 \\\hline\end{array}$ The company's weighted-average unit contribution margin is:

• A)$3.00.
• B)$3.55.
• C)$4.00.
• D)$12.00.
• E)$19.35.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Dividends

Payments made by a corporation to its shareholder members, often derived from the company's profits.

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often receiving dividends before common shareholders.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits via dividends.