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Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door is
Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000. not complete XAnswer (1) Determine the selling price per composite unit. Quantity Selling Price per unit Total per composite unit Windows 200.00 $1,600.00 8 2 500.00 Doors 1,000.00 $2,600.00 (2) Determine the variable costs per composite unit. Total per composite unit Variable costs per unit Quantity $1,000.00 $ Windows 125.00 350.00 Doors 2 700.00 $1,700.00 Contribution margin per composite unit Sales 2,600.00 Variable costs Less: 1,700.00 Contribution 90.00 X $ margin (3) Determine the break-even point in composite units. Choose Choose Denominator: Break even units / Numerator: Fixed costs per unit Contribution margin per unit / Break even units composite . 90,000 90.00 1,000 Contribution margin per composite unit Sales S 2,600.00 Less: Variable costs 1,700.00 Contribution margin 90.00 (3) Determine the break-even point in composite units. Choose Choose Denominator: Break even units Numerator: Contribution margin per unit Fixed costs per unit Break even units composite units $ 90,000 90.00 1,000 (4) Determine the number of units of each product that will be sold at the break-even point. Number of composite units to break even. Unit sales at break-even Quantity point Windows 8 Doors 2 Total A
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