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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 $112 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 $112 and of each door is $262. The variable cost of a window is $68.50 and of a door is $181.00. Fixed costs are $459,000. (Enter your "per unit" values in two decimal places.) Selling Price per unit (1) Determine the selling price per composite unit. Quantity Windows 8 $ Doors 2 112.00 262.00 Total per composite unit $ 896.00 524.00 $1,420.00 Variable costs per unit (2) Determine the variable costs per composite unit. Quantity Windows $ Doors CO 68.50 181.00 Total per composite unit $ 548.00 362.00 $ 910.00 Contribution margin per composite unit Sales Less: Variable costs Contribution margin 1,420.00 910.00 510.00 (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Total fixed costs Contribution margin per unit 459,000 Break Even Units Break even units 900 composite units 510.00 =
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