Serial Problem Business Solutions LO P4

Business Solutions sells upscale modular desk units and office chairs in the ratio of 4:2 (desk unit:chair). The selling prices are $1,260 per desk unit and $510 per chair. The variable costs are $760 per desk unit and $260 per chair. Fixed costs are $162,500. 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.

Selling price per composite unit

Variable costs per composite unit

Break-even point

composite units

	Desk	Chairs
Unit sales