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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.

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

#### 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

\$2.49