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    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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    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

    $2.19

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