Business Solutions sells upscale modular desk units and office chairs in the ratio of 2:1 (desk unit:chair). The selling prices are $1,270 per desk unit and $520 per chair. The variable costs are $770 per desk unit and $270 per chair. Fixed costs are $87,500.

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. Break-even point ? composite units

4. Compute the number of units of each product that would be sold at the break-even point.

Desk Chairs

Unit sales ? units ? units