Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is $264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two decimal places.)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 3CE: Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods...
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(1) Determine the selling price per composite unit.
Quantity
Selling Price per unit
Total per composite unit
Windows
Doors
(2) Determine the variable costs per composite unit.
Quantity
Variable costs per unit
Total per composite unit
Windows
Doors
Contribution margin per composite unit
Contribution margin
(3) Determine the break-even point in composite units.
Choose Numerator:
Choose Denominator:
Break Even Units
Break even units
(4) Determine the number of units of each product that will be sold at the break-even point.
Quantity
Number of composite units to break even.
Unit sales at break-even point
Windows
Doors
Total
Transcribed Image Text:(1) Determine the selling price per composite unit. Quantity Selling Price per unit Total per composite unit Windows Doors (2) Determine the variable costs per composite unit. Quantity Variable costs per unit Total per composite unit Windows Doors Contribution margin per composite unit Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Break Even Units Break even units (4) Determine the number of units of each product that will be sold at the break-even point. Quantity Number of composite units to break even. Unit sales at break-even point Windows Doors Total
Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is
$264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two
decimal places.)
Transcribed Image Text:Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is $264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two decimal places.)
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