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 fixed costs are $1,612,000. 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 $20 $8
Ultra 24 4

A.31,000 of A and 31,000 of B.
B.31,000 of A and 62,000 of B.
C.10,333 of A and 20,667 of B.
D.36,167 of A and 72,333 of B.
E.62,000 of A and 31,000 of B.

Answer

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