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Business Solutions sells upscale modular desk units and office chairs in the ratio of 2:1 (desk unit:chair). The selling prices are $1,180 per desk unit

Business Solutions sells upscale modular desk units and office chairs in the ratio of 2:1 (desk unit:chair). The selling prices are $1,180 per desk unit and $430 per chair. The variable costs are $680 per desk unit and $180 per chair. Fixed costs are $181,250.

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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