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13 1.2 points eBook Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (60% of sales) and doors (40%
13 1.2 points eBook Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (60% of sales) and doors (40% of sales). The selling price of each window is $400 and of each door is $900. The variable cost of each window is $225 and of each door is $550. Fixed costs are $1,457,750. (1) Compute the weighted-average contribution margin. Sales mix Contribution margin Total per unit Hint References Windows Doors Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Denominator: Weighted-average contribution margin per unit Numerator: Total fixed costs = Break Even Units = Break Even Units 0 (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 Unit sales at break-even point Windows Doors Total
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