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A firm sells two products, Regular and Ultra. For every unit of Regular sold, two units of Ultra are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products
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17 votes
17 votes
A firm sells two products, Regular and Ultra. For every unit of Regular sold, 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 Unit Sales Price Variable Cost Per Unit Regular $ 20 $ 8 Ultra 24 4 Multiple Choice

User Scott Centoni
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1 Answer

23 votes
23 votes

Answer:

$12

$20

Step-by-step explanation:

contribution margin = price - variable cost

20 - 8= 12

24 - 4 = 20

User Jabe
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2.3k points
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