A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two
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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:
Product | Unit Sales Price | Variable Cost Per Unit |
Regular | $20 | $8 |
Ultra | 24 | 4 |
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