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 $1,150 per desk unit and $400 per chair. The variable costs are $650 per desk unit and $150 per chair. Fixed costs are $200,000.

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.