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Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $230 and of each door is
Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $230 and of each door is $560. The variable cost of each window is $140 and of each door is $380. Fixed costs are $596,700. Total per unit (1) Compute the weighted average contribution margin. Sales mix Contribution margin Windows 70% Doors 30% Weighted average contribution margin (2) Compute the break-even point in units using the weighted average contribution margin. Numerator: Denominator: 1 Break Even Units Break Even Units 0 (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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