Question: 1 Exercise 5-22 (Algo) CVP analysis with two products LO P3 16 points Check my work Handy Home sells windows (70% of sales) and doors
1 Exercise 5-22 (Algo) CVP analysis with two products LO P3 16 points Check my work Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $290 and of each door is $680. The variable cost of each window is $170 and of each door is $440. Fixed costs are $842,400. (1) Compute the weighted-average contribution margin. Sales mix Contribution margin Total per unit eBook Windows Doors 70% $ 30% $ 864.00 $ 170.00 516.00 440.00 Hint Weighted-average contribution margin $ 610.00 Ask Numerator: (2) Compute the break-even point in units using the weighted-average contribution margin. Denominator: = Break Even Units = Break Even Units 0 Print References Sales mix (3) Compute the number of units of each product that will be sold at the break-even point. Number of units to break even. Unit sales at break-even point Windows Doors Total
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
