Serial Problem Business Solutions L.O. P4

Business Solutions sells upscale modular desk units and office chairs in the ratio of 2:1 (desk unit:chair). The selling prices are $1,210 per desk unit and $460 per chair. The variable costs are $710 per desk unit and $210 per chair. Fixed costs are $162,500.

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 units.

Break-even point

composite units

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

	Desk	Chairs
Unit sales	units	units