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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 >
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 >
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