Question: 6 Exercise 5-22 (Static) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales) The selling
6 Exercise 5-22 (Static) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales) The selling price of each window is $200 and of each door is $500. The variable cost of each window is $125 and of each door is $350. Fixed costs are $720.000 4 DO tani Total per unit 6) Compute the weighted average contribution margin Sales mix Contribution margin Windows Doon Weighted average contribution margin (2) Compute the break-even point in units using the weighted average contribution margin Numerator: Denominator Break Even Units Break Even Units cay Compute the number of units of each product that will be sold at the break-even point Sales mix Number of units to break even Windows Doors Total Unit sales at break-even point
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
