Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $200 and of each d
Posted: Sun Jul 03, 2022 3:49 pm
Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $200 and of each door is $500. The variable cost of each window is $125 and of each door is $350. Fixed costs are $720,000. (1) Compute the weighted-average contribution margin. Sales mix 80% Windows Doors 20% 1 Windows Doors Total Contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin. Numerator: Denominator: Weighted-average contribution margin (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. Total per unit = Break Even Units Break Even Units 0 Unit sales at break-even point