Refer to the information from exercise use the information


Question: Refer to the information from Exercise. Use the information to determine the

(1) weighted average contribution margin,

(2) break-even point in units, and

(3) number of units of each product that will be sold at the break-even point.

Exercise: Home Builders sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $100 and of each door is $250. The variable cost of a window is $62.50 and of a door is $175. 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.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Refer to the information from exercise use the information
Reference No:- TGS02334624

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)