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Chapter 21 Cost-Volume-Profit Analysis Alternative Demo Prob em Twenty-one Multi-product breakeven point Problem #2 Handy Home sells window and doors in the ratio of 8:2
Chapter 21 Cost-Volume-Profit Analysis Alternative Demo Prob em Twenty-one Multi-product breakeven point Problem #2 Handy Home sells window and doors in the ratio of 8:2 (windows:doors) The selling price of each is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000. Required: 1. Determine the contribution margin for one composite unit 2. Compute the break-even point in composite units 3. Compute the number of units of each product that will be sold at the Break-even point. 4. Compute the number of units of each product that need to be sold to achieve a net income of $180,000
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