Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of...
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Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of each window is $250 and of each door is $600. The variable cost of each window is $150 and of each door is $400. Fixed costs are $884,000. (1) Compute the weighted-average contribution margin. Sales mix Contribution margin Total per unit Windows Doors 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 (3) Compute the number of units of each product that will be sold at the break-even point. Unit sales at break-even point Sales mix Number of units to break even. Windows Doors Total Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of each window is $250 and of each door is $600. The variable cost of each window is $150 and of each door is $400. Fixed costs are $884,000. (1) Compute the weighted-average contribution margin. Sales mix Contribution margin Total per unit Windows Doors 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 (3) Compute the number of units of each product that will be sold at the break-even point. Unit sales at break-even point Sales mix Number of units to break even. Windows Doors Total
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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