Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $390 and of each door is $880. The variable cost of each window is $220 and of each door is $540. Fixed costs are $1,203,600. (1) Compute the weighted-average contribution margin. Sales mix Windows Doors Contribution margin Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: Windows Doors Total (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. W Total per unit Break Even Units Break Even Units Unit sales at break-even point

Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $390 and of each door is $880. The variable cost of each window is $220 and of each door is $540. Fixed costs are $1,203,600. (1) Compute the weighted-average contribution margin. Sales mix Windows Doors Contribution margin Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: Windows Doors Total (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. W Total per unit Break Even Units Break Even Units Unit sales at break-even point

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4EA: A product has a sales price of $250 and a per-unit contribution margin of $75. What is the...

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