Answer Happy

Exercise 18-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows doors). The selling price of each window is $120 and of each door is $270. The variable cost of a window is $72.50 and of a door is $185.00. Fixed costs are $275,000. (Enter your "per unit" values in two decimal places.) (1) Determine the selling price per composite unit. Quantity Windows Doors (2) Determine the variable costs per composite unit. Quantity Windows Doors Contribution margin per composite unit Salen Less: Variable costs Contribution margin 20 00 8 2 S $ $ Answer is complete but not entirely correct. (3) Determine the break-even point in composite units. Selling Price per unit Variable costs per unit Choose Denominator 210.00 270.00 72.50 185.00 2.220.00 950.00 1,270.00 Total per composite unit $1,680.00 540.00 $2,220.00 Total per composite unit $580.00 370.00 $ 950,00 Break Even Unita
1.25 points (1) Determine the selling price per composite unit. Quantity Windows Doors (2) Determine the variable costs per composite unit. Quantity Windows Doors Contribution margin per composite unit Sales Less: Variable costs Contribution margin 00 Windows Doors Total 275,000 8 $ 20 ✔ 1 7 1 8 2 (3) Determine the break-even point in composite units. Choose Numerator: Total fixed costs $ $ $ 8 2 $ Selling Price per unit $ Variable costs per unit Choose Denominator: Contribution margin per unit 210.00 270.00 72.50 185.00 2,220.00 950.00 1,270.00 1,270.00 (4) Determine the number of units of each product that will be sold at the break-even point. Number of composite units to break even Quantity S 216 216. Total per composite unit $1,680.00 540.00 $2.220.00 Total per composite unit $ 580.00 370.00 $ 950.00 Break Even Units Break even units 217 composite units Unit sales at break-even point 216 54 270 Windows Doors Total