Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $210 and of each door is $52 ariable cost of each window is $130 and of each door is $360. Fixed costs are $480,000 (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. Numerator: Denominator: 1 1 3) Compute the number of units of each product that will be sold at the break-even point. Mindows oors units units . Break Even Units Break Even Units
Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $210 and of each door is $52 ariable cost of each window is $130 and of each door is $360. Fixed costs are $480,000 (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. Numerator: Denominator: 1 1 3) Compute the number of units of each product that will be sold at the break-even point. Mindows oors units units . Break Even Units Break Even Units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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D1.
Transcribed Image Text:Exercise 5-22 (Algo) CVP analysis with two products LO P3
Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $210 and of each door is $520. The
variable cost of each window is $130 and of each door is $360. Fixed costs are $480,000.
(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.
Numerator:
1
Denominator:
1
(3) Compute the number of units of each product that will be sold at the break-even point.
Windows
units
Doors
units
.
Break Even Units
Break Even Units
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