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Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80%...

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Exercise 5-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $270 and of each door is $640. The variable cost of each window is $160 and of each door is $420. Fixed costs are $699.600. (1) Compute the weighted average contribution margin. Contribution margin Total per unit Windows Sales mix 20% 80% Doors Weighted average contribution margin (2) Compute the break-even point in units using the weighted average contribution margin. Denominator: = Numerator: Total fixed costs 1 = Break Even Units Break Even Units 0 (3) Compute the number of units of each product that will be sold at the break-even point. Sales mix Number of units to break even. Unit sales at break-even point Windows Doors Total wwwwwwwww

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