Exercise: CVP analysis using composite units
Handy Home sells windows and doors in the ratio of 7:1 (windows:doors). The selling price of each window is $90 and of each door is $240. The variable cost of a window is $62 and of a door is $174. Fixed costs are $460,000.
Use this information to determine the
(1) selling price per composite unit,
(2) variable costs per composite unit,
(3) break-even point in composite units, and
(4) number of units of each product that will be sold at the break-even point.
(Omit the "$" sign in your response. Use whole numbers in all calculations.)
- Selling price per composite unit $
- Variable costs per composite unit $
- Break-even point in composite units
- Unit sales of windows at break-even point
- Unit sales of doors at break-even point