Question
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 $2,812,000. 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 | $ | 34 | $ | 12 |
| Ultra | 37 | 11 | ||
Multiple Choice
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38,000 Regular units and 38,000 Ultra units.
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38,000 Regular units and 76,000 Ultra units.
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12,667 Regular units and 25,333 Ultra units.
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44,333 Regular units and 88,667 Ultra units.
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76,000 Regular units and 38,000 Ultra units.
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
17th Edition
0077304454, 978-0077304454
