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Need help fixing the answers marked in red Exercise 18-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the
Need help fixing the answers marked in red
Exercise 18-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of each window is $113 and of each door is $263. The variable cost of a window is $69.00 and of a door is $181.50. Fixed costs are $469,625. (Enter your "per unit" values in two decimal places.) Answer is complete but not entirely correct. Selling Price per unit (1) Determine the selling price per composite unit. Quantity Windows 7$ Doors 3 113.00 263.00 Total per composite unit $ 791.00 789.00 $1,580.00 Variable costs per unit (2) Determine the variable costs per composite unit. Quantity Windows 7 $ Doors 3 69.00 181.50 Total per composite unit 483.00 544.50 $1,027.50 $ Contribution margin per composite unit Sales Less: Variable costs Contribution margin 1,580.00 1,027.50 275.30 $ (3) Determine the break-even point in composite units. Choose Numerator: 1 Choose Denominator: Total fixed costs 1 Contribution margin per unit Break Even Units Break even units 8,500 composite units $ 469,625 / $ 55.25 = (4) Determine the number of units of each product that will be sold at the break-even point. Quantity Number of composite units to break even. 7 Windows Doors Total 8,500 8,500 Unit sales at break-even point 5,950 Windows 2,550 Doors 8,500 Total 3Step by Step Solution
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