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A Firm Sells Two Products, Regular and Ultra A) $52
B) $32

Question 239

Multiple Choice

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 $1,612,000. Selling prices and cost information for both products follow. The contribution margin per composite unit is: Product
 Unit Sales  Variable Cost Per  Product  Price  Unit  Regular $20$8 Ultra 244\begin{array} { l r r r } & \text { Unit Sales } & \text { Variable Cost Per } \\\text { Product } & \text { Price } & \text { Unit } & \\\text { Regular } & \$ 20 & & \$ 8 \\\text { Ultra } & 24 & & 4\end{array}


A) $52.
B) $32.
C) $20.
D) $12.
E) $44.

Correct Answer:

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