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Exercise 5-22 (Alao) CVP analvsis with two products LO P3 Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (60%

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Exercise 5-22 (Alao) CVP analvsis with two products LO P3

Exercise 5-22 (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 Compute the weighted-average contribution margin. Sales mix Windows Doors Contribution margin Weighted-average contribution margin ) Compute the break-even point in units using the weighted-average contribution margin. Numerator: ompute t num ro units ea pro uct Sales mix Denominator: so att rea -even point. Number of units to break even Total per unit Break Even Units Break Even Units unit sales at break-even point Windows Doors Total

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