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
$\begin{array} { l r r r } & \text { Unit Sales } & \text { Variable Cost Per } \\\text { Product } & \text { Price } & \text { Unit } & \\\text { Regular } & \$ 20 & & \$ 8 \\\text { Ultra } & 24 & & 4\end{array}$

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

---

Definitions:

Land Account

A type of asset account on a company's balance sheet that represents the cost of land owned by the company.

Expenditures

Outflows of money or other valuable assets that are paid or incurred as a result of acquiring goods or services.

Acquisition Cost

The total cost that a company recognizes for bringing an asset into its possession, including purchase price, installation charges, and other necessary expenditures.

Salvage Value

The anticipated salvage value assigned to an asset after its period of use concludes.