Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000. |(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 $ 0.00 0.00 Contribution margin

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door
is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000.
|(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
$
0.00
0.00
Contribution margin
Transcribed Image Text:Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000. |(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 $ 0.00 0.00 Contribution margin
0.00
0.00
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
Transcribed Image Text:0.00 0.00 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
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