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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
- 37,500 Regular and 37,500 Ultra
- 37,500 Regular and 75,000 Ultra
- 12,500 Regular and 25,000 Ultra
- 43,750 Regular and 87,500 Ultra
- 75,000 Regular and 37,500 Ultra
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