Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,200 per desk unit and $650 per chair. Variable costs are $720 per desk unit and $325 per chair. Fixed costs are $188,100. 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 number of units of each product that would be sold at the break-even point. Chairs Unit sales Desk
Business Solutions sells upscale modular desk units (60% of sales) and office chairs (40% of sales). Selling prices are $1,200 per desk unit and $650 per chair. Variable costs are $720 per desk unit and $325 per chair. Fixed costs are $188,100. 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 number of units of each product that would be sold at the break-even point. Chairs Unit sales Desk
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 $1,200 per desk
unit and $650 per chair. Variable costs are $720 per desk unit and $325 per chair. Fixed costs are $188,100.
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 number of units of each product that would be sold at the break-even point.
Chairs
Unit sales
Desk
< Required 2
Required 3 >
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