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?