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. What is the firm's break-even point in units of Regular and Ultra?

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

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.

Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)