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Handy Home sells windows (40% of sales) and doors (60% of sales). The selling price of each window is $300 and of each door is
Handy Home sells windows (40% of sales) and doors (60% of sales). The selling price of each window is $300 and of each door is $700. The variable cost of each window is $175 and of each door is $450. Fixed costs are $1,090,000. Total per unit (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: 1 Denominator: 1 Break Even Units Break Even Units 0 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 Total
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