Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,250 per desk unit and $500 per chair. The variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000.

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.