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NI Chapter 5 Cost Behavior and Cost-Volume-Profit Analysis (This serial problem began in Chapter I and continues through most of the book. If previous chapter

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NI Chapter 5 Cost Behavior and Cost-Volume-Profit Analysis (This serial problem began in Chapter I and continues through most of the book. If previous chapter seg- SERIAL PR ments were not completed, the serial problem can begin at this point.) Business Solutic SP 5 Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chain, The selling prices are $ 1,250 per desk unit and S500 desk unit and $250 per chair. Fixed costs are $120,000. nt per chair. The variable costs are $750 per 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. Check (3) 60 O Alexander Image/S Beyond the Numbers

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