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Problem - Handy Home sells windows and doors in the ratio of 8:2 (windows: doors). The selling price of each window is $120 and of each door is $270. The variable cost of a window is $72.50 and of a door is $185.00. Fixed costs are $275,000.
Required -
1) Determine the selling price per composite unit.
2) Determine the variable costs per composite unit.
3) Determine the break-even point in composite units.
4) Determine the number of units of each product that will be sold at the break-even point.
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