Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (20% of sales) and doors (80% of sales). The selling price of each window is $260 and of each door is $620. The variable cost of each window is $155 and of each door is $410. Fixed costs are $992,250. (1) Compute the weighted-average contribution margin. Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: (3) Compute the number of units of each product that will be sold at the break-even point. units units Windows Doors = = Break Even Units Break Even Units

Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows ( 20% of sales) and doors ( 80% of sales). The selling price of each window is $260 and of each door is $620. The variable cost of each window is $155 and of each door is $410. Fixed costs are $992,250