Handy home sells windows and doors in the ratio of 82


Handy Home sells windows and doors in the ratio of 8:2 (windows: doors). The selling price of each window is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000. 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, 

(4) Number of units of each product that will be sold at the break even point.

Solution Preview :

Prepared by a verified Expert
Managerial Accounting: Handy home sells windows and doors in the ratio of 82
Reference No:- TGS01207625

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)