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 $340 and of each door is $780. The variable cost of each window is $195 and of each door is $490. Fixed costs are $1,146,950. Answer is not complete. (1) Compute the weighted-average contribution margin. Sales Contribution margin Total per unit mix Windows Doors 60% S 145.00 S 87.00 40% S 290.00 S 116.00 Weighted-average contribution margin S 203.00 (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Total fixed costs 1 1,146,950 S Denominator: Weighted-average contribution margin per unit (3) Compute the number of units of each product that will be sold at the break-even point. Windows Doors Total Sales mix 60% 40% Number of units to break even. Break Even Units Break Even = Units 5,650 units 203.00 |= Unit sales at break-even point