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. (Omit the $ sign in your response)

Selling Price $___________

2. Compute the variable costs per composite unit. (Omit the $ sign in your response)

Variable costs $_________________

3. Compute the break-even point in composite unites.

Break-even point = ______________ composite units

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

Unit sales Desk = __________ units Chairs = ________ units