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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 is
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. 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: Denominator: Break Even Units Break Even Units 11 (3) Compute the number of units of each product that will be sold at the break-even point Number of units to break even Sales mix Unit sales at break-even point Windows Doors Total
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