Question:
Modern Home sells windows and doors in the ratio of 9:1 (windows:doors). The selling price of each window is $90 and of each door is $250. The variable cost of a window is $60 and of a door is $220. Fixed costs are $450,000. 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.