Compute the break-even point in composite units

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Reference no: EM131268178

Business Solutions sells upscale modular desk units and office chairs in the ratio of 2:1 (desk unit:chair). The selling prices are $1,180 per desk unit and $430 per chair. The variable costs are $680 per desk unit and $180 per chair. Fixed costs are $181,250.

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.

Reference no: EM131268178

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