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
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Solution Summary
Answers a question on CPV analysis using multiple products
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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
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