ok nt Ask Print ferences Exercise 5-22 (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 $270 and of each door is $640. The variable cost of each window is $160 and of each door is $420. Fixed costs are $699,600. (1) Compute the weighted-average contribution margin. Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: 1 (3) Compute the number of units of each product that will be sold at the break-even point. Windows units Doors units = Break Even Units Break Even Units
ok nt Ask Print ferences Exercise 5-22 (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 $270 and of each door is $640. The variable cost of each window is $160 and of each door is $420. Fixed costs are $699,600. (1) Compute the weighted-average contribution margin. Weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: 1 (3) Compute the number of units of each product that will be sold at the break-even point. Windows units Doors units = Break Even Units Break Even Units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 5-22 (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 $270 and of each door is
$640. The variable cost of each window is $160 and of each door is $420. Fixed costs are $699,600.
(1) Compute the weighted-average contribution margin.
Weighted-average contribution margin
(2) Compute the break-even point in units using the weighted-average contribution margin.
Numerator:
Denominator:
1
(3) Compute the number of units of each product that will be sold at the break-even point.
Windows
units
units
Doors
=
Break Even Units
Break Even Units
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