Reference no: EM131539071

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.