Question: Exercise 22-17 CVP analysis using composite units L.O. P4 Home Builders sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of
Exercise 22-17 CVP analysis using composite units L.O. P4 Home Builders 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 $275,000. (1) Determine the selling price per composite unit. (Omit the "$" sign in your response.) Selling price per composite unit? $ (2) Determine the variable costs per composite unit (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Variable costs per composite unit? $ (3) Determine the break-even point in composite units. (Round your intermediate calculation to 2 decimal places.) Break-even point in composite units? composite units (4) Determine the number of units of each product that will be sold at the break-even point. (Round your intermediate calculation to 2 decimal places.) Unit sales of windows at break-even point? units Unit sales of doors at break-even point? units
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