Business solutions sells upscale modular desk units and

Reference no: EM13613788

Business Solutions sells upscale modular desk units and office chairs in the ratio of 4:2 (desk unit:chair). The selling prices are $1,160 per desk unit and $410 per chair. The variable costs are $660 per desk unit and $160 per chair. Fixed costs are $387,500.

1. What is the selling price per composite unit?

2. What is the variable costs per composite unit?

3. What is 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. How many desks? How many chairs?

Reference no: EM13613788

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