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Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of each window is $109 and of each door is $259. The variable cost of a window is $67.00 and of a door is $179.50. Fixed costs are $580,425. (Round your contribution margin per unit answers to 2 decimal places.)

(1) Determine the weighted-average contribution margin per unit. Contribution margin per unit x '% of sales mix Weighted unit CM

Windows x 70% Doors x 30%

Weighted-average contribution margin

(2) Determine the break-even point in units. Choose Numerator: / Choose Denominator: = Break even units

/ = Break even units 0

(3) Determine the number of units of each product that will be sold at the break-even point. Unit sales of windows at break-even point Unit sales of doors at break-even point

Hint #1

Check my work

References eBook & ResourcesHints

Chapter 21 Cost-volume-profit analysis (break even) http://ezto.mheducation.com/hm.tpx

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