Question

A firm sells two products, Regular and Ultra. For every unit of
Regular sold, two units of Ultra are sold. The firm's total fixed
costs are $1,612,000. Selling prices and cost information for both
products follow. What is the firm's break-even point in units of
Regular and Ultra?

Product | Unit Sales Price | Variable Cost Per Unit | ||

Regular | $ | 20 | $ | 8 |

Ultra | 24 | 4 |

Group of answer choices

31,000 Regular units and 31,000 Ultra units.

36,167 Regular units and 72,333 Ultra units.

62,000 Regular units and 31,000 Ultra units.

31,000 Regular units and 62,000 Ultra units.

10,333 Regular units and 20,667 Ultra units.

Answer #1

A firm sells two products, Regular and Ultra. For every unit of
Regular sold, two units of Ultra are sold. The firm's total fixed
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products follow. What is the firm's break-even point in units of
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Regular $ 39 $ 15 Ultra 42 15

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point in units of Regular and Ultra?
Product
Unit Sales Price
Variable Cost Per
Unit
Regular
$
34
$
12
Ultra
37
11
Multiple Choice
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Product
Unit Sales Price
Variable Cost Per Unit
Regular
$
25
$
11
Ultra
28
7
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Product
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Variable Cost per
unit
Contribution
Margin
per unit
X
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