Question
Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of each window is $310 and of each door
Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of each window is $310 and of each door is $720. The variable cost of each window is $180 and of each door is $460. Fixed costs are $1,215,500. (1) Compute the weighted-average contribution margin. Sales mix Contribution margin Windows Doors Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: 1 Denominator: (3) Compute the number of units of each product that will be sold at the break-even point. Number of units to break even. Sales mix Windows Doors Total Total per unit = Break Even Units Break Even Units 0 Unit sales at break-even point
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Cost Accounting A Managerial Emphasis
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
6th Canadian edition
978-0132893534, 9780133389401, 132893533, 133389405, 978-0133392883
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