Reference: 18_04
a Firm Sells Two Products, a and B

question 140

Multiple Choice

Reference: 18_04
A firm sells two products, A and B. For every unit of A the firm sells, two units of B are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow:
$\begin{array}{rrr}&\text { Unit }&\text { Variables}\\&\text { Sales }&\text { Costs}\\\text { Product}&\text { Price } &\text { per Unit }\\\hline\mathrm{A} & \$ 20 & \$ 8 \\\mathrm{~B} & 24 & 4\end{array}$

-The weighted-average contribution margin is:

• A) $14.67
• B) $17.33
• C) $16.00
• D) $18.00
• E) $15.00

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