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 variable cost are $750 per desk unit and $250 per chair. Fixed cost are $120,000.
1. Compute the selling price per composite chair
2. Compute the variable cost per composite unit
3. Compute the breakeven point in composite units
4. Compute the number of units of each product that would be sold at the breakeven point