# Handy Home: CVP analysis and break-even using composite unit

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Question 5:

Exercise 5-14: CVP analysis using composite units L.O. P4

Handy Home sells windows and doors in the ratio of 7:1 (windows:doors). The selling price of each window is

$90 and of each door is $240. The variable cost of a window is $62 and of a door is $174. Fixed costs are

$460,000.

Use this information to determine the

(1) selling price per composite unit,

(2) variable costs per composite unit,

(3) break-even point in composite units, and

(4) number of units of each product that will be sold at the break-even point.

(Omit the "$" sign in your response. Use whole numbers in all calculations.)

Selling price per composite unit $

Variable costs per composite unit $

Break-even point in composite units

Unit sales of windows at break-even point

Unit sales of doors at break-even point

https://brainmass.com/business/cost-volume-profit-analysis/handy-home-cvp-analysis-break-even-composite-unit-205505

#### Solution Preview

Exercise 5-14: CVP analysis using composite units L.O. P4

Handy Home sells windows and doors in the ratio of 7:1 (windows:doors). The selling price of each window is

$90 and of each door is $240. The variable cost of a window is $62 and of a ...

#### Solution Summary

Answers a question on CPV analysis using multiple products