Problem:
Success system sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit: chair). the selling prices are $1,250 per desk and $500 per chair. the varible cost are $750 per desk unit and $250 per chair. fixed cost are $120,000.
Required:
Question 1: Compute the selling price per composite chair
Question 2: Compute the variable cost per composite unit
Question 3: Compute the break even point in composite units
Question 4: Compute the number of units of each product that would be sold at the break even point
Note: Please provide reasons to support your answer.