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Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of each window is $250 and of each door is
Handy Home sells windows (30% of sales) and doors (70% of sales). The selling price of each window is $250 and of each door is $600. The variable cost of each window is $150 and of each door is $400. Fixed costs are $884,000.
(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: Denominator: Break Even Units Break Even Units Unit sales at break-even point (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 TotalStep by Step Solution
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