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A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's total
A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's total fixed costs are $2,880,000. 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 | $ | 38 | $ | 16 |
Ultra | 41 | 16 | ||
Multiple Choice
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40,000 Regular units and 40,000 Ultra units.
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80,000 Regular units and 40,000 Ultra units.
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13,333 Regular units and 26,667 Ultra units.
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40,000 Regular units and 80,000 Ultra units.
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46,667 Regular units and 93,333 Ultra units.
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