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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 $2,700,000. 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 Price

Regular-$33-$15

Ultra-36-9

  1. 37,500 Regular and 37,500 Ultra
  2. 37,500 Regular and 75,000 Ultra
  3. 12,500 Regular and 25,000 Ultra
  4. 43,750 Regular and 87,500 Ultra
  5. 75,000 Regular and 37,500 Ultra

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