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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
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 $120 and of each door is $270. The variable cost of a window is $72.50 and of a door is $185.00. Fixed costs are $275,000. (Enter your "per unit" values in two decimal places.) Answer is complete but not entirely correct. (1) Determine the selling price per composite unit. Quantity Selling Price per unit Windows Doors S 210.00 Total per composite unit $1,680.00 20 270.00 540.00 $2.220.00 (2) Determine the variable costs per composite unit. Quantity Variable costs per unit Total per composite unit Windows Doors B S 2 72.50 165.00 $ 580.00 370.00 $950.00 Contribution margin per composite unit Sales Less: Variable costs Contribution margin $ (3) Determine the break-even point in composite units. Choose Denominator 2.220.00 950.00 1,270.00 Break Even Unita
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