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.