Business Solutions sells upscale modular desk units and office chairs in the ratio of 2:1 (desk unit:chair). The selling prices are $1,210 per desk unit and $460 per chair. The variable costs are $710 per desk unit and $210 per chair. Fixed costs are $162,500.
| 1. |
Compute the selling price per composite unit. (Omit the "$" sign in your response.)
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| 2. |
Compute the variable costs per composite unit. (Omit the "$" sign in your response.)
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| 3. |
Compute the break-even point in composite units.
|
| Break-even point |
composite units |
| 4. |
Compute the number of units of each product that would be sold at the break-even point.
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|
Desk |
Chairs |
| Unit sales |
units |
units |
|