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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

  • 40,000 Regular units and 40,000 Ultra units.

  • 80,000 Regular units and 40,000 Ultra units.

  • 13,333 Regular units and 26,667 Ultra units.

  • 40,000 Regular units and 80,000 Ultra units.

  • 46,667 Regular units and 93,333 Ultra units.

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