Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,280 per desk unit and $530 per chair. Variable costs are $770 per desk unit and $265 per chair. Fixed costs are $135,960. Required: 1. Compute the weighted-average contribution margin. 2. Compute the break-even point in units. 3. Compute the number of units of each product that would be sold at the break-even point. Complete this question by entering your answers in the tabs below.
Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,280 per desk unit and $530 per chair. Variable costs are $770 per desk unit and $265 per chair. Fixed costs are $135,960. Required: 1. Compute the weighted-average contribution margin. 2. Compute the break-even point in units. 3. Compute the number of units of each product that would be sold at the break-even point. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give answer in image formate
Transcribed Image Text:Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,280 per desk
unit and $530 per chair. Variable costs are $770 per desk unit and $265 per chair. Fixed costs are $135,960.
Required:
1. Compute the weighted-average contribution margin.
2. Compute the break-even point in units.
3. Compute the number of units of each product that would be sold at the break-even point.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Compute the weighted-average contribution margin. (Round your final answer to the nearest whole number.)
Weighted-average contribution margin
< Required 1
Required 2 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education