Determine the variable costs per composite unit


Response to the following problem:

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.

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Financial Accounting: Determine the variable costs per composite unit
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