(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.)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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