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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 is
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 Weighted average contribution margin (2) Compute the break-even point in units using the weighted average contribution margin. Numerator 7 Denominator: - Break Even Units Break Even Units (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 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 Weighted average contribution margin (2) Compute the break-even point in units using the weighted average contribution margin. Numerator 7 Denominator: - Break Even Units Break Even Units (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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