(1) Determine the selling price per composite unit.QuantitySelling Price per unitTotal per composite unitWindowsDoors(2) Determine the variable costs per composite unit.QuantityVariable costs per unitTotal per composite unitWindowsDoorsContribution margin per composite unitContribution margin(3) Determine the break-even point in composite units.Choose Numerator:Choose Denominator:Break Even UnitsBreak even units(4) Determine the number of units of each product that will be sold at the break-even point.QuantityNumber of composite units to break even.Unit sales at break-even pointWindowsDoorsTotal Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is$264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in twodecimal places.)

Break Even Point - It is point at which, business generate equal amount profit against the cost…

Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is $264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two decimal places.)

Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is $264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two decimal places.)

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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Question

(1) Determine the selling price per composite unit.
Quantity
Selling Price per unit
Total per composite unit
Windows
Doors
(2) Determine the variable costs per composite unit.
Quantity
Variable costs per unit
Total per composite unit
Windows
Doors
Contribution margin per composite unit
Contribution margin
(3) Determine the break-even point in composite units.
Choose Numerator:
Choose Denominator:
Break Even Units
Break even units
(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.
Unit sales at break-even point
Windows
Doors
Total

Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is
$264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two
decimal places.)

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