1. O'Dale sells two products. Product R has a sales price of $4 and a variable cost of$2, while Product T has a sales price of $10 and a variable cost of $4. What isO'Dale's weighted-average unit contribution margin?

a) $7 b)$3 c) Insufficient information to Calculate d) $4

2. Consider the characteristics of the following two companies: Company A: Involved in mass production Company B: Produces goods customized to client specifications. Indicate whether the statement is true or false.

Company A is more likely than company B to have a heightened focus on efficiency. (True or False)?

3. At a volume of 20,000 units, Ducati reported sales revenues of $1,000,000, variable costs of $300,000, and fixed costs of $260,000. The company's contribution margin per unit is:

a) $37 b) an amount other than those above c) $28 d) $35 e) $22

4. Read the following excerpts from a recent news article, and answer the question below: Utility bill change would mean higher costs for low-volume users "Wisconsin Public Service Corp. wants to make the fixed charges on its bills ... fixed. In its 2015 rate request currently before the state Public Service Commission, WPS is asking that it be allowed to increase the fixed charges on its electric bills by $15 per month. In return, it would reduce the rates on electric use. Fixed costs are those expenses to the utility that do not change, such as the cost of keeping utility lines connected to houses. Whether individual bills would be higher depends on how much electricity or natural gas is used. Low-volume users would end up with higher bills." "In the case of electricity, a typical customer one who uses 500-600 kilowatts a month won't notice a difference, WPS says. Those who use less will see their bills increase up to about $15 a month, again depending on how much electricity they use. The current fixed cost, listed as the Daily Customer Charge in the electricity section of the bill, is about $10. That's because the majority of "fixed" costs in this case, those for keeping the power running to your house, whether you are using a little or a lot now are included in the variable consumption charges."

Assume that the typical customer uses 500 kilowatts of electricity a month and that the taxes portion of the customers' bills remains unchanged under the proposed new billing scheme as compared to the existing billing scheme. By how much should the "per kilowatt-hour charge" be reduced, for WPS's statement that typical customers won't notice a difference in their electricity bill to be true. Enter the cost per kilowatt-hour as a number (so if the answer is 5 cents, just enter 5). _______________