Purchase Solution

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

Not what you're looking for?

Ask Custom Question

See pdf

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

Attachments
Purchase this Solution

Solution Summary

Answers a question on CPV analysis using multiple products

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 ...

Purchase this Solution


Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.