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

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Answer:

Instructions are listed below.

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)

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