Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair).
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Question:
Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,340 per desk unit and $590 per chair. The variable costs are $840 per desk unit and $340 per chair. Fixed costs are $210,000.
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.
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