Explanation:

🧠 Why a Custom Report Type Is the Right Fit
Universal Containers wants to:
Report on customers with Service Contracts
See which of those customers have specific Entitlements
Use this data to evaluate and possibly adjust support offerings
🔹 To achieve this, you need a report that spans multiple related objects:
Accounts or Contacts (representing customers)
Service Contracts
Entitlements
A Custom Report Type allows you to:
Define relationships between these objects
Include fields from all relevant records
Filter and group data based on Entitlement criteria
This gives UC the granular visibility needed to analyze support coverage across its customer base.

❌ Why the Other Options Don’t Fit
A. Joined Report
Useful for comparing data across unrelated objects, but lacks flexibility for deeply related objects like Service Contracts and Entitlements. Harder to filter and group meaningfully.
B. Dashboard
Dashboards visualize data but don’t generate it. You need a report first — and that report must be based on a custom report type to include the necessary relationships.

🔍 Real-World Insight
Salesforce recommends Custom Report Types when:
You need to report across related objects
Standard report types don’t include all required relationships
You want to filter, group, and summarize complex data
📘 Salesforce Help: Custom Report Types Overview