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Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of each window is $310 and of each door is
Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of each window is $310 and of each door is $720. The variable cost of each window is $180 and of each door is $460. Fixed costs are $884,000.
(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. Numerator: Denominator: (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 Windows Doors Total = Total per unit Break Even Units Break Even Units Unit sales at break-even point
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Solution 1 Compute the weightedaverage contribution margin Sales mix WN 1 Contribution margin WN 2 T...Get Instant Access to Expert-Tailored Solutions
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