A Firm Sells Two Products, Regular and Ultra

question 151

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:

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

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