Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even point

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 18-22 (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 $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800.

(1) Compute the weighted-average contribution margin

(2) Compute the break-even point in units using the weighted-average contribution margin

(3) Compute the number of units of each rpoduct that will be sold at the break-even point

 

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