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Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $350 $800. The variable cost of each window is $200 and of each door is $500. Fixed costs are $1,111,500. (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: I 1 Denominator: = Break Even Units Break Even Units

Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $350 $800. The variable cost of each window is $200 and of each door is $500. Fixed costs are $1,111,500. (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: I 1 Denominator: = Break Even Units Break Even Units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $350 and of each door $800. The variable cost of each window is $200 and of each door is $500. Fixed costs are $1,111,500. (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: (3) Compute the number of units of each product that will be sold at the break-even point. Windows units Doors units 11 = 11 Break Even Units Break Even Units 0
Transcribed Image Text:Handy Home sells windows (70% of sales) and doors (30% of sales). The selling price of each window is $350 and of each door $800. The variable cost of each window is $200 and of each door is $500. Fixed costs are $1,111,500. (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: (3) Compute the number of units of each product that will be sold at the break-even point. Windows units Doors units 11 = 11 Break Even Units Break Even Units 0
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