Cvp analysis using composite units


Exercise: CVP analysis using composite units

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.

(Omit the "$" sign in your response. Use whole numbers in all calculations.)

  • 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 :

Prepared by a verified Expert
Accounting Basics: Cvp analysis using composite units
Reference No:- TGS01908758

Now Priced at $25 (50% Discount)

Recommended (96%)

Rated (4.8/5)