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What three basic assumptions are used in cvp analysis

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Question: 1. What three basic assumptions are used in CVP analysis?

2. 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.

Reference no: EM131539066

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