Cvp analysis using weighted-average contribution margin

Reference no: EM13578430

I. CVP analysis using composite units 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.

II. CVP analysis using weighted-average contribution margin Using the information from IV above, 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.

Reference no: EM13578430

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