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Handy Home sells windows (60% of sales) and doors (40% of sales). The selling price of each window is $280 and of each door is
Handy Home sells windows (60% of sales) and doors (40% of sales). The selling price of each window is $280 and of each door is $660. The variable cost of each window is $165 and of each door is $430. Fixed costs are $861,350. (1) Compute the weighted average contribution margin. Sales mix Windows Contribution margin Total por unit 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 (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 oven. Unit sales at break-even point Windows Doors Total
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