Acc225 Fundamental Accounting Principles: Serial Problem 22 (SP22) Business Solutions (CVP Analysis)
Acc225 Fundamental Accounting Principles Serial Problem 22 (SP22) Business Solutions sells upscale modular desks units and office chairs in the ratio of 3:2 (desk unit: chair). The selling prices 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 composite 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.