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Office Furniture Inc. sells modular desk units and office chairs in the ratio of 3:2. That is 3 desk units for every 2 chairs sold.

Office Furniture Inc. sells modular desk units and office chairs in the ratio of 3:2. That is 3 desk units for every 2 chairs sold. The selling prices are $1,280 per desk unit and $540 per chair. The variable costs are $760 per desk unit and $270 per chair. Shared fixed costs total $160,000.
a) Prepare a schedule to compute the selling price and variable cost per composite unit.
b) Compute the break-even point in composite units.
c) Compute the number of units of each product and the total sales revenue per product that would occur at the break-even point.

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