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Question - Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $200 and of each door is $500. The variable cost of each window is $125 and of each door is $350. Fixed costs are $720,000.
Required -
(1) Compute the weighted-average contribution margin.
(2) Compute the break-even point in units using the weighted-average contribution margin.
(3) Compute the number of units of each product that will be sold at the break-even point.
Calculating Average Operating Assets, Margin, Turnover, and Return on Investment . Refer to the information for East Mullett Manufacturing on the previous page.
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