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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
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 $1,812,000. Selling prices and cost information for both products follow. The contribution margin per composite unit is:
Product | Unit Sales Price | Variable Cost Per Unit | |||||||
Regular | $ | 40 | $ | 20 | |||||
Ultra | 43 | 17 |
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