Question
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:
a. Compute the selling price per composite unit.
b. Compute the variable costs per composite unit.
c. Compute the break-even point in composite units.
d. Compute the number of units of each product that would be sold at the break-even point
Note: Please solve the problem completely with details that I can practice and learn. Thank you.
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