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Exercise 18-22 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 18-22 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 $108 and of each door is $258. The variable cost of a window is $66.50 and of a door is $179.00. Fixed costs are $686,000. (Enter your "per unit" values in two decimal places.) Selling Price per unit Total per composite unit (1) Determine the selling price per composite unit. Quantity Windows 8 $ Doors 2 108.00 258.00 516.00 Variable costs per unit (2) Determine the variable costs per composite unit. Quantity Windows Doors Total per composite unit Contribution margin per composite unit Sales $ 0.00 0.00 Less: Variable costs Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: 1 Choose Denominator: Total fixed costs 1 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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