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Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $270 and of each door is
Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $270 and of each door is $640. The variable cost of each window is $160 and of each door is $420. Fixed costs are $699,600.
(1) Compute the weighted-average contribution margin. Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. \begin{tabular}{|c|c|c|c|c|} \hline Numerator: & I & Denominator: & = & Break Even Units \\ \hline & \multicolumn{2}{|l|}{1} & = & Break Even Units \\ \hline & & & & \\ \hline (3) Compute the numb & I & I be sold at the & & \\ \hline Windows & & units & & \\ \hline Doors & & units & & \\ \hline \end{tabular}Step by Step Solution
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