Problem - Success Systems sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,310 per desk unit and $560 per chair. The variable costs are $810 per desk unit and $310 per chair. Fixed costs are $180,000.
Compute the selling price per composite unit.
Compute the variable costs per composite unit.
Compute the break-even point in composite units.
Compute the number of units of each product that would be sold at the break-even point.