Business Solutions sells upscale modular desk units and office
chairs in the ratio of 2:1 (desk unit:chair). The selling prices
are $1,240 per desk unit and $490 per chair. The variable costs are
$740 per desk unit and $240 per chair. Fixed costs are
$143,750.
Required:
1. Compute the selling price per composite unit.
2. Compute the variable costs per composite
unit.
3. Compute the break-even point in composite
units.
4. Compute the number of units of each product
that would be sold at the break-even point.
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