Reference no: EM132778314

Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit:chair). The selling prices are $1,340 per desk unit and $590 per chair. The variable costs are $840 per desk unit and $340 per chair. Fixed costs are $210,000.

Required:

Problem 1. Compute the selling price per composite unit.

Problem 2. Compute the variable costs per composite unit.

Problem 3. Compute the break-even point in composite units.

Problem 4. Compute the number of units of each product that would be sold at the break-even point.