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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
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. |
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