Business Solutions sells upscale modular desk units and office chairs in the rat

Question

Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unitchair). The selling prices are $1,200 per desk unit and $450 per chair. The variable costs are $700 per desk unit and $200 per chair. Fixed costs are $270,000. Requlrec 1. Compute the selling price per composite unit. (Omlt the "$" sign In your response.) Selling price 2. Compute the variable costs per composite unit. (Omlt the "$" slgn In your response.) Variable costs $ 3. Compute the break-even point in composite units. Break-even point composite units 4. Compute the number of units of each product that would be sold at the break-evern point. Desk Chairs Unit sales units units

Explanation / Answer

1 Selling price 1200 per desk 1200*3 3600 Selling price 450 per chair 450*2 900 Selling price of composite unit 4500 2 Variable cost of desk (700*3) 2100 Variable cost of Chair (200*2) 400 Variable composite cost 2500 3 Fixedcost/(sales-variable cost) 270000/(4500-2500) 135 4 Desk Chair 135/5*3 135/5*2 81 54

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