SP 21 Serial Problem Business Solutions (Algo) LO P3

Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,310 per desk unit and $560 per chair. Variable costs are $785 per desk unit and $280 per chair. Fixed costs are $153,720.

Required:

1. Compute the weighted average contribution margin.

2. Compute the break even point in units.

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