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Exercise 1 8 - 2 2 ( Algo ) CVP analysis with two products LO P 3 Handy Home sells windows ( 2 0 %

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Exercise 18-22(Algo) CVP analysis with two products LO P3
Handy Home sells windows (20% of sales) and doors (80% of sales). The selling price of each window is $320 and of each door is $740. The variable cost of each window is $185 and of each door is $470. Fixed costs are $1,348,650.
(1) Compute the weighted-average contribution margin.
\table[[,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.
\table[[Numerator:,1,Denominator:,=,Break Even Units,],[,1,,=,Break Even Units,],[,,,,,]]
(3) Compute the number of units of each product that will be sold at the break-even point.
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