Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2...

50.1K

Verified Solution

Question

Accounting

Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:2 (desk unit;chair). The selling price are $1,250 per desk unit and $500 per chair. The variable costs are $750 per desk unit and $250 per chair. Fixed costs are $120,000.

Required:

1. Compute the selling price per composite unit.

2. Compute the variable costs per compsite unit.

3. Compute 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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students