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Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (40% of sales) and doors (60% of sales). The selling price
Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (40% of sales) and doors (60% of sales). The selling price of each window is $360 and of each door is $820. The variable cost of each window is $205 and of each door is $510. Fixed costs are $1,426,000. Total per unit (1) Compute the welghted 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. Numerator: 1 Denominator: 7 Break Even Units Break Even Units E 5 (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even Unit sales at break-even point Windows Doors Total
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