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

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 contribution margin per composite unit is:

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