Question

Serial Problem Business Solutions LO P4

Business Solutions sells upscale modular desk units and office chairs in the ratio of 4:2 (desk unit:chair). The selling prices are $1,260 per desk unit and $510 per chair. The variable costs are $760 per desk unit and $260 per chair. Fixed costs are $162,500.

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.

	Selling price per composite unit

	Variable costs per composite unit

	Break-even point composite units

	Desk Chairs Unit sales

Answer 1

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