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.
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