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Handy Home sells windows (20% of sales) and doors (80% of sales). The selling price of each window is $380 and of each door
Handy Home sells windows (20% of sales) and doors (80% of sales). The selling price of each window is $380 and of each door is $860. The variable cost of each window is $215 and of each door is $530 Fixed costs are $1,737,450. (1) Compute the weighted average contribution margin. Sales mix Contribution margin Total per unit Windows Doors $ 165.00 $ 330.00 Weighted-average contribution margin (2) Compute the break-even point in units using the weighted average contribution margin. Denominator: Weighted-average contribution margin per unit Numerator: Total fixed costs 1,737 450 $ (3) Compute the number of units of each product that will be sold at the break-even point. Windows Doors Total Sales mix Number of units to break even Break Even Units. Break Even Units 297.00 5.850 units Unit sales at break-even point 1,170 Windows 4,680 Doors 5,850 Total units
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