Managerial Accounting

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Moderate

Total Units for Two Products

MGRACT-6V1VUM

Hargan, Inc. manufactures and sells two types of widgets. The contribution margin per unit of the regular one is \$25, and the contribution margin per unit of the premium one is \$75. This year the company manufactured and sold the same amount of each widget. The fixed costs were \$675,000, and the profit before income taxes was \$540,000.

How many total units were sold this year?

A

24,300

B

12,150

C

2,700

D

48,600