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Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling
Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $210 and of each door is $520. The variable cost of each window is $130 and of each door is $360. Fixed costs are $480,000. (1) Compute the weighted-average contribution margin. Sales mix Contribution margin Windows Doors Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Denominator: Numerator: Total per unit = Break Even Units = Break Even Units 0 Sales mix (3) Compute the number of units of each product that will be sold at the break-even point. Number of units to break even. Unit sales at break-even point Windows Doors Total
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