Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,150 per desk unit and $700 per chair. Variable costs are $690 per desk unit and $350 per chair. Fixed costs are $208,000. 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.
Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,150 per desk unit and $700 per chair. Variable costs are $690 per desk unit and $350 per chair. Fixed costs are $208,000. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Business Solutions sells upscale
modular desk units (60% of sales) and
office chairs (40% of sales). Selling
prices are $1,150 per desk unit and
$700 per chair. Variable costs are $690
per desk unit and $350 per chair. Fixed
costs are $208,000.
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
Transcribed Image Text:Assessment Tool iFrame
by entering your answers in the tabs below.
Required 1 Required 2
Compute the break-even point in units. (Do not round your intermediate calculations and round your final answer up to the
nearest whole unit.)
Break-even point
Required 3
G
units
Show Transcribed Text
Unit sales
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Compute the number of units of each product that would be sold at the break-even point.
Desk
Chairs
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