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Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $200 and of each door
Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $200 and of each door is $500. The variable cost of each window is $125 and of each door is $350. Fixed costs are $720,000. (1) Compute the weighted-average contribution margin. Sales mix Contribution margin Windows Doors 80% 20% Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Denominator: Numerator: Total per unit = Break Even Units = Break Even Units 0 Sales mix (3) Compute the number of units of each product that will be sold at the break-even point. Number of units to break even. Unit sales at break-even point Windows Doors Total
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