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.

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. The contribution margin per composite unit is: 
A) $12. 
B) $20. 
C) $32. 
D) $44. 
E) $52.

Quizplus · Accepted Answer

The Answer of 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.

A Firm Sells Two Products, Regular and Ultra