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Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,250 per desk unit and $500
Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,250 per desk unit and $500 per chair. Variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000. Required: 1. Compute the weighted-average contribution margin. 2. Compute the break-even point in units. 3. Compute the number of units of each product that would be sold at the break-even point.
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