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Exercise 05-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of
Exercise 05-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is $264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two decimal places.) Answer is not complete. Selling Price per unit (1) Determine the selling price per composite unit. Quantity Windows 8$ Doors 2 114.00 Total per composite unit $ 912.00 528.00 $1,440.00 264.00 Variable costs per unit (2) Determine the variable costs per composite unit. Quantity Windows 8 $ Doors 2 69.50 182.00 Total per composite unit $ 556.00 364.00 $ 920.00 1,440.00 Contribution margin per composite unit Sales Less: Variable costs Contribution margin 920.00 (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Total fixed costs Contribution margin per unit Break Even Units Break even units 0 (4) Determine the number of units of each product that will be sold at the break-even point. Quantity Number of composite units to break even. Unit sales at break-even point Windows Doors Total
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