Exercise 05-22 CVP analysis using composite units LO P4

Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $120 and of each door is $270. The variable cost of a window is $72.50 and of a door is $185.00. Fixed costs are $275,000. (Enter your "per unit" values in two decimal places.)

(1) Determine the selling price per composite unit.
		Quantity	Selling Price per unit		Total per composite unit
	Windows
	Doors
(2) Determine the variable costs per composite unit.
		Quantity	Variable costs per unit		Total per composite unit
	Windows
	Doors
Contribution margin per composite unit
			$0.00
			0.00
	Contribution margin
(3) Determine the break-even point in composite units.
	Choose Numerator:	/	Choose Denominator:	=	Break Even Units
		/		=	Break even units
					0
(4) Determine the number of units of each product that will be sold at the break-even point.
		Quantity	Number of composite units to break even.		Unit sales at break-even point
	Windows
	Doors
	Total